TaxTMI 
TaxTMI 
2023 (4) TMI 745
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....fidavit filed by the assessee on the grounds inter-alia that he has earlier engaged Shri Anil Thakrar to file the appeal who has not filed the same in time due to unprofessional behavior and also ill-advised assessee; that he has neither filed appeal nor arranged the documents required; that during the period of delay the assessee has faced huge loss of resources including financial resources and when he realized his resources he has changed his authorized representative to file the appeals; that due to business loss his finances and wealth has been continuously dwindling and he has sold even his flat at Raheja Classique and now he is residing in a rental premises. 2. However, on the other hand, the Ld. D.R. for the Revenue opposed the a....
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....e Commissioner of Income Tax (Appeals) (hereinafter referred to as the Ld. CIT(A)] confirming the penalty levied by the Assessing Officer (AO) to the tune of Rs.18,92,513/- and Rs.13,20,370/- for A.Y. 2008-09 & 2011-12 respectively under section 271(1)(c) of the Income Tax Act, 1961 (for short 'the Act') by raising identically worded grounds except the difference in the penalty amount (grounds of A.Y. 2008-09 are taken for the sake of brevity) inter-alia that: "1) The Id. A.O as well as Ld CIT(A) is erred in confirming Penalty of Rs.18,92,513/-. 2) The appellant Prays to delete the Penalty levied on this account. 3) The appellant craves to add, alter or omit any or all of the above grounds of appeal with prior per....
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....available on record in the light of the facts and circumstances of the case and law applicable thereto. 9. Undisputedly after the decision of the Tribunal on quantum appeals the assessee has accepted the addition on the basis of which penalty has been levied. It is also not in dispute that the assessee had paid the taxes along with interest on the additions made on the basis of which penalty has been levied. 10. In the backdrop of the aforesaid facts and circumstances of the case, order passed by the Ld. Lower Authorities and argument addressed by the authorized representative of the parties to the appeals the sole question arises for determination in this case is: "As to whether the assessee has concealed particulars of inco....
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....ed 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. 14. So far as first contention raised by the Ld. A.R. for the assessee that the AO has not applied his mind while recording his satisfaction to initiate the penalty proceedings under section 271(1)(c) of the Act is concerned, we have perused the order passed by the AO for A.Y. 2008-09 wherein in case of addition of sundry creditors AO has recorded his satisfaction that "penalty proceedings under section 271(1)(c) of the Act are initiated separately by issue of notice under section 274 of the Act"; addition made in case of closing stock again the AO recorded his sat....
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.... settled principle of law that in order to invoke the provisions contained under section 271(1)(c) of the Act i.e. as to whether the assessee has furnished inaccurate particulars of income or concealed particulars of income need to be invoked specifically but in the instant case the AO has failed to apply his mind at the time of recording his satisfaction at the time of framing assessment to initiate the penalty proceedings under section 271(1)(c) of the Act as to under which limb of section 271(1)(c) of the Act, the penalty proceedings are being initiated, rather vague and ambiguous satisfaction has been recorded as discussed in the preceding paras. This is a mechanical satisfaction recorded by the AO which shows that the AO was himself no....
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....lf satisfied at the time of making disallowance/additions in assessment order if the assessee has furnished inaccurate particulars of income or has concealed particulars of his income rather he has to be on the safer side invoked both the limbs of section 271(1)(c) of the Act. It is not only the case of invalid satisfaction rather the AO has levied the penalty in case of the addition as discussed in the preceding para which have been deleted or made on adhoc basis. So the decisions relied upon by the Ld. D.R. for the Revenue are not applicable to the facts and circumstances of the case. 21. The Ld. D.R. for the Revenue further relied upon the decision rendered by the Hon'ble Supreme Court in case of Gangotri Textile (supra). We have pers....