2023 (2) TMI 578

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....deleting the penalty of Rs. 1,39,31,919/- and deciding the appeal of the assessee in its favour despite of the fact that the assessee has filed incorrect MAT income and AO revised the MAT income in the assessment proceedings and found that the assessee by filing incorrect computation of income on MAT u/s 115JB of the Income Tax Act, 1961 wherein addition of Rs. 6,96,32,612/- was made by AO on which tax of Rs. 1,39,31,919/- was evaded by the assessee company. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not relying on penalty notice u/s 274 r.w.s. 271(l)(c ) of the Income Tax Act, 1961 dated 11.12.2017 issued to the assessee wherein it has been clearly mentioned that "the assessee" ha....

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....lf of the assessee. Notice of hearing sent to the assessee at the address furnished in form no. 36 have been returned unserved with the postal remarks "left" or "No such firm at this address". Therefore, the appeal was taken up for hearing in the absence of the assessee and is being decided after hearing the learned DR and on the basis of material available on record. 4. Learned DR submitted that the learned CIT(Appeals) was not justified in deleting the addition. He submitted that the learned CIT(Appeals) has deleted the penalty purely on the basis of technical ground. However, the fact of the matter is that a notice was issued to the assessee and the assessee participated in the proceedings. 5. We have heard learned DR and gone thro....

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....ere all the ground mentioned in Section 271are mentioned would not satisfy requirement of law. (r) The assessee should know the grounds which he has to meet specifically. Otherwise, principles of natural justice is offended. On the basis of such proceedings, no penalty could be imposed to the assessee. (s) Taking up of penalty proceedings on one limb and finding the assessee guilty of another limb is bad in law. (t) The penalty proceedings are distinct from the assessment proceedings. The proceedings for imposition of penalty though emanate from proceedings of assessment, it is independent and separate aspect of the proceedings." 5.4 The above order of Hon'ble Karnataka High Court is accepted....