2023 (6) TMI 1271

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.... on the facts of the case. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred both on facts and in law in levying penalty in gross violation of principle of natural justice and without providing sufficient opportunity to the appellant to present its case. 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred both on facts and in law in confirming the penalty of Rs. 61,612/- u/s 271(1)(c) of the Act on account of concealment of income and furnishing of inaccurate particulars of income being 100% of the tax on the addition of Rs. 3,45,482/-. 4. (1) On the facts and circumstances of the case, the show cause notice u/s 274 r.w.s 271 of the act issued by Id. AO is invalid in law as the same does not m....

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.... appellant craves leave to add, alter or amend any of the grounds of appeal." 3. Facts giving rise to the present appeal are that income tax return filed by the assessee on 23.05.2012 declaring total income of Rs.14,52,020/- from Salary, house property, capital gains, and income from other sources. The case of the assessee was re-opened for scrutiny u/s 147/148 of the Income Tax Act, 1961 ("the Act") for the reason that the assessee had purchased the penny scrip of M/s. Dhvanil Chemicals Ltd. of Rs.12,35,000/- and sold the same for INR 26,00,000/-. Statutory notices u/s 148 and 143(2) of the Act dated 31.03.2019 and 18.11.2019 respectively were issued and served upon the assessee. In response thereto, the assessee filed reply from time to ....

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....re reproduced as under for the sake of clarity:- "This is an appeal filed by the assessee against the order of the CIT(A)- NFAC dated 20.03.2023 passed u/s 271(1)(c) wherein the penalty of Rs. 61,612/- as levied by the AO in his order dated 03.01.2022 has been confirmed by the CIT(A). 2. The penalty has been levied by the AO on the basis of the additions made by him in his order u/s 147 r.w.s 143(3) dated 18.12.2019, wherein the income of the assessee was assessed at Rs. 17,97,502/- while making an addition on account of STCG of Rs. 14,52,020/-. 3. Legal Issue: Show Cause Notice issued u/s 274 r.w.s 271 is invalid in law and is liable to be quashed It is here to bring in notice that the AO has issued notices u/s 274 r.w.s. 271 of ....

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.... - Virender Kumar Khosla V. Acit, I.T.A. No. 8228/DEL/2018, dt. 13.12.2022 5. Further, the addition of Short Term Capital Gain of Rs. 3,45,482/- made by the AO has already been declared by the assessee in her return of income, the AO without considering the details of capital gains submitted by the assessee, straight away made the addition without even issuing a show cause notice in regard to this. The assessee in order to avoid any further litigation paid the due taxes and decided not to go in appeal." 7. On the other hand, Ld. Sr. DR opposed the submissions and supported the orders of the authorities below. He submitted that the assessee was well aware about the charge and he participated into the proceedings. Therefore, it cannot be....