2023 (2) TMI 265

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.... 2. All the captioned appeals have been heard together and are being disposed of by way of this consolidated order. ITA No.5711/Del/2018 (Assessment Year 2009-10) 3. Briefly stated, the assessee filed return of income declaring Rs.18,67,980/- as taxable income. The assessment was framed under Section 143(3) r.w. Section 263 of the Act wherein the additions of Rs.17,65,013/- was carried out. The addition of Rs.12,10,106/- on account of disallowance of interest was however deleted in quantum proceedings and the balance addition of Rs.5,54,907/- was restored to the file of the Assessing Officer for suitable verifications in the quantum proceedings in ITA No.5620/Del/ and 6184/Del/2015 (Assessment Years 2009-10 and 2010-11) order dated....

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....ars of income per se. The levy of penalty under Section 271(1)(c) is thus not attracted. Coupled with this, notice issued under Section 274 r.w. Section 271(1)(c) has been stated to be issued in a mechanical manner without striking of the inappropriate portion from the notice. It is thus not known the exact nature of default committed by the assessee. 6. Hence when seen cumulative, assessee deserves to be exonerated from the clutches of penalty under Section 271(1)(c) of the Act. 7. In the result, the appeal of the assessee is allowed. ITA No.5712/Del/2018 (Assessment Year 2010-11) 8. Briefly stated, the assessee declared taxable income of Rs.20,56,101/- in its return of income for Assessment Year 201011. Additions of Rs.1,47,99....

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....such entries after deduction of TDS (iii) assessment of trust (iv) additions based on preponderance of probabilities, we find merit in the plea of the assessee when tested on the touchstone of Section 271(1)(c) of the Act. 11. While it is true that the findings given in the assessment proceedings would be relevant and admissible material in the penalty proceedings but however such findings cannot operate as res judicata because considerations that arise in the penalty proceedings are quite different from those in the assessment proceedings. The documents produced on behalf of the assessee points out the circumstances which do create some doubt, the benefit of which should go to the assessee insofar as the penalty proceedings are concerne....