TaxTMI 
TaxTMI 
2021 (1) TMI 532
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....of the Income Tax Act 1961(In short the 'Act') dated 25.9.2014 framed by DCIT (Central), Indore. 2. Sole grievance raised in both these appeals is against the finding of Ld. CIT(A) confirming the levy of penalty u/s 271AAA of the Act by the Ld. A.O at Rs. 7,24,540/- and Rs. 30,04,050/- levied for Assessment Years 2011-12 and 2012-13 respectively. 3. At the outset Ld. Counsel for the assessee submitted that the impugned penalty was levied for the withdrawal of excess claim of depreciation during assessment proceeding post to search on 05.05.2011 carried out u/s 132 of the Act at Keti-Kalyan Group. Ld. Counsel for the assessee further submitted that the issue raised in these appeals is squarely covered in favour of the assessee and t....
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....dication we reproduced below the notice for Assessment Year 2011-12:- NOTICE UNDER SECTION 274 READ WITH SECTION 271AAA OF THE INCOME TAX ACT, 1961 PAN- AADCK0722H OFFICE OF THE Deputy Commissioner of Income Tax (Central), Indore Date: - 05/03/2014 M/s. Keti Infrastructure Private Limited, 31/6, Vatsalya Chambers, Sneh Nagar, t Main Road, Indore Whereas in the course of proceedings before me for the assessment year 2011 12 it appears to me that you:- *Have without reasonable cause failed to furnish me return of income with you were required to furnish by a notice given under section 22(1)/22(2}/34 of the India Income Tax Act, 1922 or which you were required to furnish under section 13....
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....r notice was issued to another group concern of the assessee M/s Keti Toll Infrastructure Ltd on 26.3.2014 and the legal issue of levy of penalty u/s 271AAA of the Act was before this Tribunal in ITA No.928/Ind/2019 and the penalty u/s 271AAA of the Act was deleted by this Tribunal observing as follows:- "13. The above notice clearly spells out that the provisions under which the notice was issued for levy of penalty u/s 271AAA but the charges mentioned therein refers to those provided in Section 271(1)(c) of the Act. Ld. A.O failed to mention the charges provided u/s 271AAA of the Act. We find that this issue is also squarely covered in favour of the assessee by the decision of Hon'ble Coordinate Chandigarh Bench in t....
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....ar before the undersigned at 11.00A.M. on 20.02.2014 and show cause why an order imposing a penalty on you should not be made u/s 271AAA(1) of the Income-tax Act, 1961). If you do not wish to avail yourself of this opportunity of being heard in person or though authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made u/s 271AAA(1). (Seal) Sd/- (Laganpreet Sandhu). Dy. Commissioner of Income Tax, Central Circle-II, Chandigarh" 20. A perusal of the above notice shows that though the Assessing officer has intended to initiate penalty proceedings u/s 271AAA(1) of the Act, however, the wording written in the body of the letter does not ....
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....raised in ITA No.928/Ind/2019 by the revenue stands dismissed". 9. On perusal of above we find that since the legal issue remains the same and so is the notice being defective and not in accordance with law has been issued in the case of assessee for Assessment Year 2011-12 and 2012-13 the penalty proceedings u/s 271AAA of the Act are held to be void ab initio. We accordingly delete the penalty [levied u/s 271AAA of the Act at Rs. 7,24,540/- and Rs. 30,04,450/- on this legal ground itself. 10. As regards merits of the case though academic in nature which in the instant appeals relates to levy of penalty for withdrawal of excess claim of depreciation during the course of assessment proceedings, we find that after being subjected to the....