TaxTMI 
TaxTMI 
2022 (11) TMI 542
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....n'ble CIT(A) has erred in law and on facts in upholding the penalty imposed by the Ld AO invoking provisions of section 271(1)(c) in case of suo-moto additional income offered in the return u/s. 153A of the Act, where no additional income is unearthed by the Ld AO and in absence of any findings of inaccurate particulars of income or concealment of income by the Ld AO." 3. The additional grounds of appeal raised by the assessee in ITA No. 2219/Ahd/2018 for A.Y. 2005-06 are read as under: "2. Because the impugned judgment and order is passed in violation of the Principles of Natural Justice as various submissions specifically raised by The Appellant have not at all been dealt with in the impugned judgment and order. 3. Be....
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....ces. The DCIT, Central Circle-2(2), Ahmedabad passed assessment order under Section 143(3) r.w.s. 153A of the Act dated 18.03.2013 making an addition of Rs. 1,60,000/- which was challenged by the assessee before the CIT(A) to delete all the additions made by the Assessing Officer and restore the assessed income to Rs. 5,95,330/- as offered by the assessee under Section 153A of the Act. The Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Act and issued a show-cause notice dated 18.03.2017 and 18.01.2017. The assessee made a detailed submission on 30.01.2017. The Assessing Officer after taking cognizance of the submissions imposed a penalty under Section 271(1(c) of the Act at Rs. 64,486/- thereby observing that....
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....r and the order of the CIT(A). The Ld. D.R. further submitted that the assessee has not declared full income in the original return filed by the assessee. This amounts to concealment of particulars of income under Section 271(1)(c) of the Act. 8. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the notice issued under Section 271(1)(c) of the Act has not specified the limb under which penalty was imposed, therefore, the decision of the Supreme Court in case of SSA's Emerald Meadows (Supra) will be applicable in assessee's case. Besides this on merit the assessee has given the details of income during the proceedings under Section 153A which cannot be stated as the concealment ....
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....ence to establish that The Appellant had concealed the income or had furnished inaccurate particulars. 6. Because the entire penalty proceedings beginning with the show cause notice are vitiated for violation of The Principles of Natural Justices as the SCN is a Performa show cause notice which doesn't even state the grounds to be met specifically by The Appellant and which does not even specify the limb of Sec.271 (1) (C) under which the penalty was sought to be levied. The Appellant states that the grounds sought to be raised as pointed out above are legal grounds raised on the basis of material available on record and don't require appreciation of any new material/facts." 11. As regards to ITA No. 215/Ahd/2019, ITA N....
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....nd in the final judgment penalty comes to be imposed u/s. 271AAA. The Appellant states that the grounds sought to be raised as pointed out above are legal grounds raised on the basis of material available on record and don't require appreciation of any new material/facts." 14. As regards ITA No. 218/Ahd/2019 for A.Y. 2011-12 the Assessing Officer initiated penalty proceedings under Section 271AAA of the Act on the additions upheld under Section 143(3) and issued a show-cause notice dated 05.02.2017. The Assessing Officer has made the original additions as unaccounted deposits rejecting the explanation offered by the assessee and the source of such cash receipts. The Ld. A.R. submitted that all the said additions were towards all....
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....on to explain the cash deposit which was pointed out in the search action related to non-explanation of the cash deposits. Section 271AAA was initiated on undisclosed income and when the assessee could not explain the same has to be invoked. But in the present case, while issuing notice under Section 274 r.w.s. 271 of the Act dated 19.03.2013 & 18.01.2017 the Assessing Officer has not explained that the penalty is regarding Section 271AAA. Further in the order under Section 271AAA, the Assessing Officer has simplicitery stated that the assessee failed to produce any evidence in support of his claim of business of undisclosed income and therefore, penalty under Section 271AAA will be attracted. It is pertinent to note that the notice issued ....