2023 (5) TMI 838

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....ied under section 271(1)(c) of the Income Tax Act, 1961 (the Act). 2. The Revenue has raised the following common grounds in both these appeals except for the figures:- "1. Whether on the facts & in the circumstances of the case and law, the Ld.CIT(A) erred in law & on facts in deleting the initiation of penalty proceedings vide penalty notice u/s 271(1)(c) on 26.05.2014 while passing assessment order u/s 144(C)/143(3) of the Income Tax Act, 1961 without taking into account that "Mere mistake in language used in penalty notice and nonstriking of the inapplicable portion cannot by itself invalidate the notice." The same was held in the decision of (i) CIT Vs Kausalya and others (Bom) 216 ITR 660 (ii) H.P. State Forest Corpn. Ltd.....

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....tion that the facts of the case relating to the decision of Hon'ble High Court and the fact of the circular of CBDT are different from the present case. In the present case the case was assessed u/s 144C(4)/143(3) of IT Act, 1961 at normal income of Rs.189,55,39,637/-, the book profit was arrived at Rs.137,77,57,881/-, vide this office dated 26.05.2014. The Ld. CIT(A) considered the submission of the assessee, as the same was submitted before the Ld. appellate authority, the final income arrived as a result of appeal effect given by the department of the order of Hon'ble ITAT and ignored the fact that the issues on which relief allowed by Hon'ble ITAT was contested by the department before the Hon'ble High Court of Delhi and....

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....der MAT provisions can there be a penalty under section 271(1)(c) of the Act has been decided by the jurisdictional High Court holding that no penalty under section 271(1)(c) of the Act could be imposed on the additions/disallowances made while computing income under normal provisions of the Act. 4. On the other hand, the ld. DR supported the orders of the Assessing Officer. 5. Heard rival submissions perused the orders of the authorities below and the decisions relied on. In these cases assessments for the assessment years 2010-11 and 2011-12 were completed under section 144C(4)/153A/143(3) of the Act by order dated 26.05.2014 determining the income under normal provisions of the Act at Rs.189,55,39,637/-, Rs.202,02,86,695/- and book....

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....er normal provisions of the Act and with reference to the additions/disallowances made while computing the income under normal provisions of the Act. 7. The assessee preferred appeals before the ld. CIT (Appeals) contending that no penalty is livable when the assessed income is finally made under the provisions of section 115JB of the Act. The ld. CIT (Appeals) following the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Nalwa Sons Investments Ltd. (supra) held that imposition of penalty under section 271(1)(c) of the Act is not sustainable. 8. We observe that the Tribunal in the case of M/s. Samin Tekmindz India Pvt. Ltd. Vs. ACIT (supra) following the decision of the jurisdictional High Court in the case of CIT Vs. ....