2023 (11) TMI 85

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....ue seeks to assail the order dated 14.06.2018 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 3. The questions of law proposed in the instant appeal are the following: (i) Whether on the facts and circumstances of the case the Ld. ITAT was justified in law in deleting the penalty u/s 271(1)(c) of the Income Tax Act, 1961 amounting to Rs. 12,90,00,000/- by relying upon the decision of the Hon'ble Apex Court in the case of SSA Emerald Meadows (2016) 73 taxrnann.com 248(SC) ignoring the fact that the AO has clearly recorded his satisfaction regarding furnishing of inaccurate particulars of the income in the assessment order? (ii) Whether on the facts and circumstances of the case the Ld. ITAT was ju....

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....enalty on both counts if such facts in a given matter. However, we find upon perusal of the assessment order, the following has been stated by the AO, with regard to initiation of penalty: ".... I am satisfied that this is a fit case for imposition of penalty u/s 271(1)(c) for failure on the part of the assessee to disclose true particulars of its income on all the issues on which additions/disallowances have been made as discussed in the order. Thus penalty proceedings u/s 271(1)(c) are initiated by issuing penalty show cause notice." 5. It is not in dispute that thereafter a notice under Section 274 of the Act was issued, to which reference is made in the order of the Tribunal. The relevant part of the notice reads as follows:....

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....inaccurate particulars of its income in respect of disallowance of various additions made by the AO. I therefore, hold that the assessee has deliberately furnished inaccurate particulars of income. This defaults liable for penalty u/s 271(l)(c) of the IT Act, 1961 to be imposed. Accordingly, I impose a penalty of Rs. 12,90,00,0001- as per the following calculation. Amount of which the assessee has furnished Inaccurate particulars of income or concealed income Rs. 35,00,97,219/- Minimum Penalty imposable@ 100% of tax sought to be evaded on such income Rs. 12,86,60,728/- Maximum Penalty imposable@ 300% of tax sought to be evaded on such income Rs. 38,59,82,184/- I imposed penalty of Rs. 12,90,00,000/-" [Emp....

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....s the judgment rendered by this court in Unitech Reliable Projects Pvt. Ltd. is concerned, the following observations, according to us, merit reproduction: "19. We may note, that even the assessment order dated 14.03.2015, whereby penalty proceedings were triggered, did not indicate as to which limb of Section 271(1)(c) was being triggered qua the petitioner. This is evident from the following observation made by the AO: "Penalty proceeding u/s 271(1)(c) is being initiated separately for concealment of income & for furnishing inaccurate particulars of income." 20. We may note, that another coordinate bench of this Court, of which one of us [i.e., Rajiv Shakdher, J.] was a party has reached the same conclusion in P....