2021 (10) TMI 662

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....sessee had made cash deposits in his bank account. AO has noted that assessee did not file the return of income for A.Y. 2011-12. AO therefore issued notice u/s. 148 of the Act. AO thereafter in the assessment order passed u/s. 147/144 of the Act on 30.03.2015 made addition of Rs. 2,05,50,008/- by applying Gross Profit @ 8.13% on the amount of aggregate credits of Rs. 25.27 crore (rounded off) in two bank accounts namely ICICI Bank & Canara Bank. Aggrieved by the quantum addition made by AO, assessee carried the matter before the CIT(A). CIT(A) vide order dated 27.03.2017 in Appeal No. 241/15-16 enhanced the addition of total income to Rs. 24,55,30,577/-. On such enhancement in income, CIT(A) vide penalty order passed u/s. 271(1)(c) of the ....

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....nd void ab-initio and deserves to be annulled, inter alia, because: (a) The Ld. AO had no 'reason to believe' to initiate the assessment proceedings under section 147 of the Act, the proceedings were initiated on highly misconceived grounds, in the nature of pretence and without any justification and on assumptions, without specifying the details or nature of the transactions and on wrong facts. (b) Any notice under section 148 of the Act was not served upon the Assessee. (c) The notice dated 24-02-2014 issued under section 148 of the Act is invalid, inter alia, because on that date the assessment proceedings, initiated by issuing various notices dated 25-07-2013, etc. issued under section 142(1) of the Ac....

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.... file of CIT(A) by the Co-ordinate Bench of Tribunal for deciding the issue afresh as per the directions contained therein. Sub-clause (iii) of Section 271(1) contemplates that if it is held that the assessee concealed the particulars of income or furnished inaccurate particulars of income, then in addition to tax, if any, payable by him, a sum which shall not be less than, but shall not exceed three times, the amount of tax sought to be evaded by the reason of the concealment of particulars of his income or furnishing of inaccurate particulars of income, be directed to be paid. Meaning thereby, the penalty equivalent to the tax sought to be evaded or three times of the tax is to be computed on the addition for which a charge is to be prove....