2023 (4) TMI 329

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...., 1961. 2. The appellant submits that there is no concealment of income in as much as the purchases made by the appellant are genuine and it was only to buy peace that the appellant did not file an appeal against the adhoc disallowance of 25% of the alleged purchases treated by the Assessing Officer as no genuine upto some extent. 3. The appellant submits that the adhoc disallowance is a mere hypothecal estimate and not a case of concealment or furnishing of inaccurate particulars. 4. The appellant craves leave to add to, alter or vary the grounds of appeal at or before the hearing of the appeal." 2. The assessee by moving an application sought to raise the additional ground that : "On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the penalty of Rs.77,600/- levied u/s 271(1)(c) of the Income tax Act, 1961 as he has not specified the exact charge for which the penalty was proposed to be levied." on the ground that the same is a legal ground which is necessary for adjudication of the issues at hand. Keeping in view the fact that the assessee by way of moving an application sought to raise additional ground....

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....1(1)(c) of the Act is not leviable when invalid notice as in the instant case has been issued to the assessee. The operative part of the order passed by the Hon'ble Bombay High Court is as under: "180. One course of before us is curing a defect in the notice by referring to the assessment order, which may or not contain reason for the penalty proceedings. The other course of action is the prevention of defect in the notice - and that 7. Sailesh Mehta v. CIT(A) ITA No.2445, 2439, 2444 &2443/Mum/2021 prevention takes just a tick mark. Prudence demands prevention is better than cure. Answers: Question No. 1: If the assessment order clearly records satisfaction for imposing penalty on one or the other, or both grounds mentioned in Sec. 271(1)(c), docs a mere defect in the notice - not striking off the irrelevant matter vitiate the penalty proceedings? 181. It does. The primary burden lies on the Revenue. In the assessment proceedings, it forms an opinion, prima facie or otherwise, to launch penalty proceedings against the assessee. But that translates into action only through the statutory notice under Sec. 271(1)(c), r.w.s. 274 of the Act. ....

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.... Room No.-309, Piramal Chamber, Lalbaug, Mumbai 400012. तारीख / Dated 29/09/2014 PENALTY U/S 271(1)(c) Pen/19/PG.43/2014-15 के संबंध में मेरे यहां होने वाली कार्रवाई के दौरान मुझे प्रतीत होता है कि आपने Whereas in the course of proceedings before me for the Assessment Year 2009-10 it appears to me that You- "बिना उचित कारण के वह आय विवरणी नहीं दी है जो आपको भारतीय आयकर अधिनियम, 1922 की 22 (1) 22(2) 34 के अधीन दी गई सूचन....

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....ुपालन नहीं किया है। * Have without reasonable cause failed to comply with a notice under Section 22(4) / 23(2) of the Indian Income-tax Act, 1922 or under Section 142(1) / 143(2) of the Inornice-Tax Act, 1961, No • अपनी आय के ब्यौर छिपा लिए है या dated इस प्रकार की आय के ब्यौरे गलत दिए है। Fumished inaccurate particulars of such income. 200..... को बजे अ.म./पू.म. में आप मेरे कार्यलय *have Concealed the particulars of your income or आपको एतद्द्वारा सूचित किया जाता है कि ताल..... ....