2021 (8) TMI 807

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....firming the penalty of Rs. 47,63,806/- u/s 271(1)(c) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. 3. At the very outset, the ld. counsel for the assessee drew our attention to the notice dated 27.12.2010 issued u/s 274 r.w.s 271 of the Act and pointed out that the notice is vague and is not decisive in respect of the charge levelled against the assessee - whether the penalty is being levied for furnishing inaccurate particulars of income or for concealment of income. 4. Representatives of both the sides were heard at length. Case records carefully perused. 5. We find that the impugned notice issued and served is as under: 6. A bare perusal of the aforementioned notice shows that the Asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ter was covered by aforesaid decision of Division Bench and, therefore, there was no substantial question of law arising for determination - Whether since there was no merit in SLP filed by revenue, same was liable to be dismissed - Held, yes [Para 2] [In favour of assessee. 9. Hon'ble Delhi High Court in case of Pr. CIT vs. Sahara India Life Insurance Company Ltd. (supra) while deciding the identical issue held as under: "21. The Respondent had challenged the upholding of the penalty imposed under Sec. 271(1)(c) of the Act, which was accepted by the IT AT. It followed the decision of the Karnataka High Court in CIT v. Manjunatha Cotton & Ginning Factory 359 ITR 565 (Kar) and observed that the notice issued by the AO would be ba....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce penalty levied by the AO and confirmed by the Id. CIT (A) is not sustainable and as such, the appeal filed by the assessee is allowed. 12. Respectfully following the decisions [supra] we direct the Assessing Officer to delete the penalty u/s 271(1)(c) of the Act amounting to Rs. 47,63,806/-. 13. In the result, the appeal filed by the assessee in ITA No. 6886/DEL/2017 is allowed. The order is pronounced in the open court on 17.08.2021 in the presence of both the rival representatives. ============= Document 1 ×› I.T.N 3. कर जाधानयम, 1961 की धारा 271 के साथ पढ़ी गई घाà¤....