TaxTMI 
TaxTMI 
2023 (4) TMI 329
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....rming the penalty levied by the Assessing Officer (AO) under section 271(1)(c) of the Income Tax Act, 1961 (for short 'the Act') qua the assessment year 2009-10 on the grounds inter-alia that :- "1. On the facts and in the circumstances of the case and in law the CIT(A) was not justified in confirming the penalty of Rs. 77,600/- levied by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 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 appell....
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....eeded to levy the penalty of Rs.77,600/- being 100% of the tax sought to be evaded. 4. The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has dismissed the same by way of confirming the penalty. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the assessee has come up before the Tribunal by way of filing present appeal. 5. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 6. Undisputedly the assessee has accepted the addition of Rs.2,98,741/- made by the AO under section 69C of the A....
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....dence 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. True, the assessment proceedings form the basis for the penalty proceedings, but they are not composite proceedings to draw strengt....