2021 (12) TMI 946

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....come Tax Appellate Tribunal "A" Bench, Kolkata in ITA Nos.1238 to 1243/Kol/2011 for the assessment years 2002-03 to 2007-08 and in ITA No.1183 to 1187/Kol/2011 for the assessment years 2002-03 to 2005-06 and 2007-08 respectively. The Revenue has raised the following substantial questions of law for consideration. a. Whether on the facts and in the circumstances of the case the learned Tribunal was justified in law in invalidating the penalty proceedings on mere mistake in the penalty notice? b. Whether on the facts and in the circumstances of the case the Learned Tribunal was justified in law in invalidating the penalty proceedings when under similar circumstances of the disclosure by the assessee during the search proceedings the Hon'....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rately. This leads to issuance of show cause notice dated 31.12.2009 calling upon the assessee to show cause as to why penalty should not be imposed on them. The assessee participated in the opportunity of hearing granted by the Assessing Officer and raised various contentions including the contentions that merely because the assessee has offered an additional income after the search and seizure operations, it would not tantamount to concealment of income liable to penalty under section 271[1][c] of the Act. Further, the assessee contended that the penalty notice was bad in law on the ground that the Assessing Officer has not recorded satisfaction. The Assessing Officer conceded the said submission and by an order dated 29.6.2010 rejected ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....[c] of the Act is liable to be cancelled on the ground that there was no proper recording of satisfaction in the order of assessment and that the show cause notice under section 274 of the Act does not satisfy the specific charge against the assessee. We have gone through the order of assessment and the order passed under section 271[1][c] of the Act. The first contention raised by the assessee was by submitting that the assessment under section 153C has been completed on the figures disclosed by it in the return filed under section 153C of the Act and, hence, penalty under section 271[1][c] cannot be imposed. The correctness of such contention was tested by the Assessing Officer and it was held that the income disclosed by the assessee at....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assumption of jurisdiction of the authority to initiate proceedings as it may be argued by the assessee that the said issue goes to the root of the matter. Be that as it may, if the Tribunal proposes to undertake such an exercise then it should do so after hearing the assessee and the Revenue also and the reasons of its satisfaction for accepting the case of the assessee should be clearly spelt out. As pointed out earlier, the decision of the Tribunal in the case of Satyananda Achariya Biswas [supra] and we have also noted that substantial portions of the order has been extracted by the Tribunal and the finding of the Tribunal is only in paragraph 17 which in our considered view is not adequate as the contention regarding the defective not....