2021 (7) TMI 460

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.... CIT[A]-3, Thane, is excessive, unreasonable, arbitrary, against the provisions of Income Tax Act, 1961 and therefore liable to be quashed. 2. The delay in filing of present appeal may kindly be condoned and appeal may be decided accordingly. 3. On facts and circumstances of the case and in law, the Hon. C.I.T.(A) has erred in directing the Assessing Officer to levy of penalty under section 271[l][c] of the Income Tax Act, 1961. 3. Brief facts of the case are that in this case the Assessing Officer has passed an assessment order under section 143(3) of the I.T. Act vide order dated 25.3.2015. In the assessment order the Assessing Officer made an addition of Rs. 7,90,595/-. The Assessing Officer was of the opinion that t....

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.... of the Act. In this case learned CIT(A) noted the facts of the case as per assessment order. Thereafter he noted that during the course of appellate proceedings appellant filed a letter dated 13.3.2018 for withdrawal of the appeal. Learned CIT(A) thereafter noted that before acceptance of withdrawal of the appeal appellant was requested to furnish details vide letter dated 15.3.2018. He reproduced the contents of the letter in which he acknowledged the receipt of a letter dated 13.3.2018 by the assessee for withdrawal of the appeal. In the said letter assessee was requested to furnish the profit and loss account for A.Ys. 2011-12, 2012-13, 2013-14 & 2014-15 and also work out the profit on the basis of percentage completion method in respec....

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.... take all these facts on record & allow us to withdraw appeal. We once again request you to not to enhance profit as we have already shown a good profit." 6. Learned CIT(A) held that the profit assessed for A&D wings is definitely on the lower side and therefore profit is enhanced. He proceeded to enhance the assessment by estimating the net profit for A&D wings and determined @ 15.37% which resulted in figure of Rs. 22,29,697/-. Thus learned CIT(A) upheld the income added by the Assessing Officer and further enhanced the income by Rs. 14,39,102/-. Thereafter learned CIT(A) noted that in view of the above said enhancement notice was issued to the assessee to showcause as to why penalty under section 271(1)(c) of the Act should not be imp....

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....so raised in connection with addition done by the Assessing Officer. Learned CIT(A) chose to note that section under which order appealed against was made under section 271(1)(c) of the Act and he captioned his order under section 271(1)(c) of the Act. From the facts on record above this is absolutely incorrect and wrong description. Thereafter in the said order learned CIT(A) noted that the assessee has sought withdrawal of appeal vide letter dated 13.3.2018. The Ld.CIT(A) gave no reason as to why he is not permitting to withdraw the appeal. Subsequent to withdrawal of the appeal learned CIT(A) issued notice for further particulars and enhancement. Here we note that learned CIT(A) has grossly erred in not recording any reason as to why he ....