2021 (11) TMI 86

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.... wrong, unjustified, illegal and unwarranted. The appellant is not liable to penalty u/s. 271(1) (c) on the following grounds: i) That the Ld. CIT(A) has not considered the various facts before passing the order. ii) That addition was made on the basis of certain expenditure written in a note pad which does not belong to the appellant. There was no material available to assume that expenditure was incurred by the appellant and no penalty can be imposed on ad hoc additions. iii) That the Ld. A.O has imposed penalty without specifying in the show cause notice dated 18.03.2015 that penalty is imposed for concealment of Income or for furnishing inaccurate particulars. Therefore the basis taken and method adop....

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....te pad which did not belong to the assessee, There was no material to assume that the expenditure was incurred by the assessee. Hence, no penalty could be imposed on such ad-hoc addition. Moreover, the penalty has been imposed without specifying specific charge in the notice issued u/s. 274 of the Act. Therefore, assumption of jurisdiction was contrary to the settled proposition of law. Further, the ld. counsel for the assessee submitted that the facts were identical in the Assessment Year under appeal and Assessment Year 2010-11 interestingly, the Assessing Officer in the Assessment Year 2010-11, dropped the penalty proceedings, however imposed in the Assessment Year under appeal in arbitrary and unjustified manner. He further submitted th....

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....l against the said addition is also strengthening the view taken by the department and acceptance of furnishing/concealing income to the tune of Rs. 15,96,494/- by the assessee. From the above, it is crystal clear that all the conditions for levying of penalty u/s. 271(1)(c) of the Act are applicable in the case of the assessee. Therefore, assessee is in default and penalty is leviable on the additions of Rs. 15,96,494/- as I am fully satisfied that assessee has concealed particulars of income to the extent of Rs. 15,96,494/-." 7. The Assessing Officer has not given any reason as to why he dropped the penalty in Assessment Year 2010-11 and sustained the imposition of penalty for Assessment Year 2009-10 under the same set of facts. Moreov....