2020 (6) TMI 804

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....at the quantum of additions were confirmed which tantamount to furnishing of inaccurate particulars of income by the assessee." 3. The return of income in this case was filed on 30/09/2008 declaring total income of Rs. 7,28,42,461/-. The return was processed u/s 143(1) of the Act. The case was selected for scrutiny and statutory notice u/s 143(2) dated 3/8/2009 was issued and duly served upon the assessee. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 on 10/05/2010 at an income of Rs. 9,23,84,310/- and additions were made as under:- (i) disallowance u/s 14A Rs. 71,97,560/- (ii) disallowance on depreciation on non compete fees of Rs. 1,23,4,688/- (iii) disallowance of repair and maintenance expenses of Rs. 39....

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.... sustained. The Ld. AR relied upon the decision of the Hon'ble Karnataka High Court in case of CIT(A) Vs. M/s Manjunatha and Ginni Factory and Ors. 359 ITR 565. The above principal was further affirmed by the Apex Court in case of CIT(A) Vs. M/s SSA' Emerald Meadows. The Ld. AR also relied upon the decision of the Hon'ble Delhi High Court in case of Pri. CIT Vs. Sahara India Life Insurance Companies Limited 2019 (8) EMI 409. 7. We have heard both the parties and perused the material available on record. It is pertinent to note that there is no concealment in the present case. The Assessee filed all the details during the regular assessment proceedings. From the notice dated 10.05.2010 produced by the Ld. AR during the hearing, it can be s....

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....e penalty u/s 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s 271(1)(c) is not sustainable and has to be deleted. Although the Ld. DR submitted that mere non-striking off of the inappropriate words will not invalidate the penalty proceedings, however, the decision of the Hon'ble Karnataka High Court in the case of SSA'S Emerald Meadows (supra) where the SLP filed by the Revenue has been dismissed is directly on the issue contested herein by the Assessee. Further, when the notice is not mentioning the concealment or the furnishing of inaccurate particulars, the ratio laid down by the Hon'ble High Court in case of M/s. Sahara India Life Insurance Company Ltd. (supra) will be applicable in ....