TaxTMI 
TaxTMI 
2022 (9) TMI 48
X X X X Extracts X X X X
X X X X Extracts X X X X
....he year 2011-12 was selected scrutiny and additions were made on unexplained cash credit. The assessee has filed an appeal to the CIT(A)-2 and no proper hearing opportunity was given. So I can't able produce the documents and not given sufficient time for hearing the case. Hence the penalty proceedings are not proper and hence we request you to kindly delete the penalty and oblige." 2. The assessee has also sought permission of this Bench to raise the following revised grounds of appeal. 1. On the facts and circumstances of the case and in law, the ld. CIT(A) has erred in confirming the penalty of Rs.1710,500/- levied by the ld. A.O u/s 271(1)(c) of the Act inspite of the fact that the show cause notice was iss....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of penalty u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") by the A.O and as confirmed by the ld. CIT(A). It is the case of the assessee that the A.O while imposing penalty was in a mind of ambiguity and has not arrived at a proper satisfaction since both in the penalty order as well as in the notice u/s 274 r.w.s. 271(1)(c) of the Act, the A.O has not struck out the inappropriate limb and has retained both the limbs of the provisions while imposing the said penalty. 3. We have perused the assessment order where initiation of penalty has been for both the furnishing inaccurate particulars of income as well as for concealment of income. That further in the penalty order at para 6 again, the A.O observed a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he provision he is levying the penalty. The A.O has not struck off the inappropriate limb of the provision which is evidently noticed as follows: NOTICE UNDER SECTION 274 READ WITH SECTION 271(1)(c) OF THE INCOME-TAX ACT, 1961 PAN: AKEPK 1272 G Office of the Income-tax Officer Ward 1, Ahmednagar Dt. 05-03-2014 To Shri Kharde Indrajeet Rajkumar a/P Kolhar, Rahat Ahmednagar Sir, Whereas in the course of proceedings before me for the A.Y. 2011-12, it appears to be that you : Have without reasonable cause filed to comply with a notice u/s 22(4)/23(1) of the Income-tax Act, 1922 or under section 142(1)/143(2) of the Income-tax Act, 1961 No. _____ dated ______ ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... counsel for the Revenue on the decision in Mak Data (P.) Ltd. (supra) to urge that the penalty contemplated by section 271 (1) (c) of the said Act was in the nature of civil liability and mens rea was not essential therein. The decision in Dilip N. Shroff (supra) having been held as not laying down good law in Dharmendra Textile Processors Ltd. (supra), it was submitted that the show cause notice issued in the present proceedings was liable to be upheld. It may be noted that all the decisions relied upon by the learned counsel for the Revenue were considered by the Full Bench while answering the issues referred to it on reference. The Full Bench having considered these decisions and having answered the question as regards defect in the not....