2019 (6) TMI 789

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....oper manner. 2. The learned CIT(A) has erred in confirming the levy of penalty u/s 271(1)(c ) of Rs. 69.72.681 -. The order passed by the assessing officer as well as that of CIT(A) lacks jurisdiction as neither the assessment order nor the penalty orders refers to "whether the penalty under section 271(1)(c) is issued and levied for "concealing the particulars of his income "or assessee has "furnished inaccurate particulars of such income". Only on this ground the order levying penalty u/s 271(1 )(c ) is liable to be quashed. 3. No notice under section 271(1)(c ) read with section 274 was issued and served upon the assessee which states "whether it is issued for "concealing the particulars of his income "or has "furnished....

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....rving that the finding in quantum proceedings would not operate as res-judicata and the assessee could not be stopped from raising new contention which he had raised in quantum proceedings and that the Ld.CIT(A) ought to have consider the alternate explanation given by the assessee regarding the sources of cash deposits in his bank account before adjudicating on the levy of penalty. Consequently the Ld. CIT(A) decided the appeal and sustained the penalty levied by the A.O. under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). 4. Now the assessee is in appeal. 5. The Ld. Counsel for the assessee submitted that the Ld. CIT(A) had not followed the directions given by the ITAT in right perspective and eve....

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....ter-se withdrawals from the bank accounts maintained by the assessee and various concerns in which he was substantially interested. He thus claims that the cash deposits in O.B.C. were made after making withdrawals from the current account of M/s Sai Cold Storage Private Ltd which in turn relate to withdrawals made from the loan account in M/s Sai Cold Storage Private Ltd. While the Appellant has submitted that M/s Sai Cold Storage Private Ltd has a substantial interest of the Appellant, no details of the ownership pattern of M/s Sai Cold Storage Private Ltd. has been submitted. Further, no details of how these withdrawals from M/s Sai Cold Storage Private Ltd. are treated in the books of the Company have also been submitted. This after a n....