2019 (10) TMI 131

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....xplanation. 5 A of section 271(1)(c) thereon. (2) 0n the facts and in the circumstances of the case Ld. CIT (A) III erred in heavily relying on the seized document BS-16 though not pertaining to relevant assessment year while confirming penalty levied U/S 271(1) (c) in view of the fact that [earned A.O. did not consider BS-16 in penalty order. (3) On the facts and in the circumstances of the case, Ld. CIT (A)III committed breach of natural justice while considering seized BS - 16 in not giving opportunity to appellant to explain her stand effectively on the same, causing prejudice to appellant. (4) On the facts and in the circumstances of the case Ld. CIT (A)-III erred in law and on facts in confirming penalty levied U/S 271(1) (c). (5) Appellant reserves right to add, alter, amend only grounds of appeal. (1) On the facts and in the circumstances of the case Ld. CIT (A) III erred in law in imposing penalty on wrong assumptions based on patently wrong facts while confirming levy of penalty u/s 271(1)(c) and application of explanation. 5 A of section 271 (1 ) (c) thereon. (2) 0n the facts and in the circumstances of the case Ld. C....

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.... in our considered opinion and following the ratio of judgment of Hon'ble Apex Court in the case of National Thermal Power Company Limited 229 ITR 383(SC) as well as in the case of Jute Corporation of India 178 ITR 668 (SC) the additional legal grounds raised before us deserves to be admitted for adjudication, if the same involves point of law which does not require any further investigation of facts. It is also clear that the issues raised in the additional ground of appeal goes to the root of the jurisdiction of the Assessing Officer to levy the penalty u/s 271(1)(c) of the Act and therefore the same are relevant to determine the liability of the assessee for penalty u/s 271(1)(c) of the Act. Accordingly the additional ground is admitted for adjudication. 5. Briefly stated facts as culled out from the records are that the assessee is a Doctor specialized in gynecologist and infertility and Managing Director of Life Care Hospital Limited. She is provided a residential accommodation in the hospital premises. A search u/s 132 were carried out at the hospital as well as residential premises of Dr. Brajbala Tiwari on 04.10.2013. Assessments u/s 153A of the Act were completed on....

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....iated for concealing particulars of income or for furnishing the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that the Ld. A.O remained silent by not specifying as for which charge the penalty proceedings have been initiated. 11. To examine this fact we have gone through the impugned notice issued on 30.10.2012 for initiating the penalty proceedings u/s 271(1)(c) of the Act for Assessment Years 2008-09, 2011-12 and 2013-14. For reference we reproduce below the notice u/s 274 r.w.s. 271(1)(c) of the Act for Assessment Year 2008-09; OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX (CENTRAL)-l, INDORE Room No. 101, AaykarBhawan(Main), Opp. WhiteChurch, Indore F. No. DCIT-(Cent.)-1/Penalty/16-17 Dated: 16/09/2016 P AN- ABAPT7 401 P Smt. Brajbala Tiwari Life Care Hospital scheme No.78, Part-II, VijayNagar, Indore. To Madam, Sub: Penalty fixation u/s 271(1)(c} r.w.s. 129 of the Income Tax Act, 1961- reg: Please refer to the above The following penalty proceedings are initiated during assessment as mentioned below. Sl.No. A.Y Sect....

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....et aside the order of penalty enforced by the authority". 15. Similarly in the case of CIT V/s Manjunatha Ginning Factory, Hon'ble High Court of Karnataka held that "the notice issued u/s 274 r.w.s. 271(1)(c) of the Act should specifically mention the ground in section 271(1)(c) whether concealment of income or for furnishing in accurate particulars of income. Sending printed form where all ground of section 271(1)(c ) would not mentioned the specific requirement of law. Assessee should know the grounds on which he has charged specific otherwise opportunities of natural justice denied. On the basis of such proceedings no penalty could be imposed to the assessee. Taking up the penalty proceedings on one limb and finding the assesssee in another limb is bad in law". Though in the instant appeal the Ld. A.O has made proper satisfaction in the body of the assessment order but in the notice issued u/s 274 r.w.s. 271(1)(c) of the Act he failed to mention the limbs for which penalty proceedings have been initiated. It is the negligence of the Ld. A.O in not making proper specific charge in the notice u/s 274 about the addition for which penalty proceedings have been initiated....