TaxTMI 
TaxTMI 
2021 (10) TMI 965
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....the consolidated order. The assessee has raised following grounds in all these three appeals respectively:- ITA No.1538/Del/2018 [Assessment Year : 2005-06] 1. "That on facts and circumstances of the case and in law, the impugned ex-parte order dated 11.03.2015 passed by the assessing officer under section 271(1)(c) of the Income Tax Act, 1961 (the Act), levying penalty of Rs. 1,31,100/- is without jurisdiction, bad in law and void ab initio. 2. That on the facts and circumstances of the case and in law, the impugned penalty order passed by the assessing officer is passed without complying with the principles of natural justice. 3. That the penalty levied under section 271(1)(c) of the Act is void and illegal i....
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.... hearing." ITA No.1539/Del/2018 [Assessment Year : 2008-09] 1. "That on facts and circumstances of the case and in law, the impugned ex-parte order dated 11.03.2015 passed by the assessing officer under section 271(l)(c) of the Income Tax Act, 1961 (the Act), levying penalty of Rs. 2,00,931/- is without jurisdiction, bad in law and void ab initio. 2. That on the facts and circumstances of the case and in law, the impugned penalty order passed by the assessing officer is passed without complying with the principles of natural justice. 3. That the penalty levied under section 271(1)(c) of the Act is void and illegal inasmuch as the assessing officer failed to record valid satisfaction in the assessment order and ....
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....d void ab initio. 2. That on the facts and circumstances of the case and in law, the impugned penalty order passed by the assessing officer is passed without complying with the principles of natural justice. 3. That the penalty levied under section 271(1)(c) of the Act is void and illegal inasmuch as the assessing officer failed to record valid satisfaction in the assessment order and failed to specify specific charge in the show cause notice for levying the penalty. 4. That on the facts and circumstances of the case and in law, the CIT(Appeals) confirmed the action of the assessing officer erred in levying penalty under section 271(1)(c) of the Act, without appreciating the fact that the appellant had neither con....
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....der:- 7. "We have heard rival submissions and perused the relevant material on record. On perusal of the assessment orders, we find that the Assessing Officer has made addition of unexplained household expenditure based on the entries found recorded in the seized diary. The relevant finding of the Assessing Officer in assessment year 2005-06 is reproduced as under: "2.6.3 On perusal of the capital account of the assessee it is seen that it has shown total drawings of Rs. 1,02,932/- during the F.Y. 2004-05. But on the other hand the details of household expenses/drawings of the assessee as per the seized page number 11-12 of Annexure A-l, party H-9 are as under: S. No. Month Amount (in Rs.) 1. April 2004 4....
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....amount of unexplained household expenses of Rs. 3,91,090/-, the source of which has not been explained by the assessee, is treated as undisclosed income of the assessee. (Addition of Rs. 3,91,090/-)" 8. In second round of proceedings before the Ld. CIT(A), in assessment year 2005-06 the assessee filed copy of bank statements explaining the credit entries and other documents, the Ld. CIT(A) adjudicated the issue as under: "....................................................................On a comparative consideration of the arguments forwarded by the AO as well as the Appellant, it was indisputably found that the Appellant had no explanation regarding the source of house hold expenditure for the amount of Rs.[3,....
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....old withdrawals declared in the capital account of the family members, who contributed household expenditure of the assessee. The Ld. Assessing Officer is directed to adjudicate the issue in dispute in accordance with law after allowing adequate opportunity of being heard to the assessee. Accordingly, the grounds raised in all the three appeals are allowed for statistical purposes." 5. We therefore, set aside the impugned penalty orders. However, it is clarified that if the additions are sustained, the Assessing Officer would be at liberty to decide the question of levy of penalty in accordance with law. Thus, grounds raised by the assessee in this appeal are partly allowed for statistical purposes only. 6. Now, we take up ITA Nos. 15....