2019 (8) TMI 563

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....of the I.T. Act and made the addition of Rs. 9 lakhs on account of unexplained gifts and amount paid as premium to procure gift. The A.O. in the assessment order initiated the penalty proceedings under section 271(1)(c) of the I.T. Act. The A.O. in the penalty order has mentioned that the Ld. CIT(A) has deleted the aforesaid addition and Tribunal dismissed the departmental appeal. It is also noted that subsequently Revenue filed appeal before Hon'ble Punjab & Haryana High Court and the Hon'ble High Court allowed the appeal of the Revenue. Therefore, fresh notice was also issued on 02.05.2011 for levy of the penalty. The A.O. vide separate Order levied the penalty on account of unexplained gifts. The Ld. CIT(A) dismissed the appeal of asses....

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....iculars of income. Therefore, penalty is not leviable in the matter. He has submitted that the issue is covered by the Order of ITAT, Delhi G-Bench in the case of Jagdamba Prasad Gupta, Delhi vs. ACIT, Circle 35(1), New Delhi in ITA.No.1834/Del./2016, Dated 21.01.2019. Copy of the Order is placed on record. 4. On the other hand Ld. D.R. relied upon the Orders of the authorities below and submitted that assessee has not raised this issue before the authorities below and that assessee was aware of the fact that he has received bogus gift, therefore, assessee was aware of the fact that assessee has furnished inaccurate particulars of income and as such liable for penalty. Therefore, merely because such facts are not mentioned in the show caus....

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....which is reproduced above. Thus, A.O. has not clarified in the notice as to for which limb of Section 271(1)(c) of the I.T. Act, penalty proceedings have been initiated against the assessee, whether for concealment of the particulars of income or furnishing inaccurate particulars of such income. The issue is, therefore, covered by the Order of ITAT, Delhi G-Bench in the case of Jagdamba Prasad Gupta, Delhi vs. ACIT, New Delhi (supra) in which in paras 5 to 7 the Tribunal held as under : "5. We have considered the rival submissions and perused the material on record. It is admitted fact that the AO before levy of the penalty u/s 271(1)(c) of the Act issued show cause notice to the assessee dated 31/12/2013, copy of which is filed at page 1....

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....ve been initiated in the assessment order. The assessee while challenging the penalty order before Ld.CIT(A) has raised a specific ground that the order passed by the AO is erroneous, illegal and against the principles of natural justice and equity. The same ground is raised in the present appeal as well. Thus, the assessee challenged the legality of the penalty order before Ld. CIT(A) which includes the legality of the show cause notice for levy of the penalty. Since the notice issued before levy of the penalty dated 31/12/2013 is void, illegal and bad in law, therefore, it was rightly challenged that entire penalty proceedings are illegal and vitiated. Thus, assessee practically did not raise any additional ground in this regard. Since ....