2024 (6) TMI 871

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....he order passed U/s. 271(1)(c) of the Income Tax Act, 1961 ["the Act"] for the AY 2011-12. 2. Briefly stated the facts of the case are that the assessee, an individual, was engaged in the business of Indian Made Foreign Liquor (IMFL) in the name and style of "Ravi Wines" for the AY 2011-12. The assessee has e-filed his return of income on 27/09/2011 by admitting total income from the said business at Rs. 5,98,610/- on gross receipts of Rs. 3,14,06,199/-. Thereafter, the case was selected for scrutiny manually with the approval of the competent Authority and accordingly, the Ld. AO completed the assessment U/s. 143(3) on 28/03/2014 wherein the Ld. AO (i) estimated the income from IMFL business at Rs. 11,45,268/- and (ii) made addition of ....

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....ssessee was unable to explain the sources for the same with any material evidences and the Ld. CIT(A) has also upheld this addition with his observations.........." Accordingly, the Ld. AO levied the penalty of Rs. 12,23,211/- U/s. 271(1)(c) of the Act and passed the order on 27/03/2018. Against the penalty order passed by the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). On appeal, the Ld. CIT(A)-NFAC dismissed the appeal of the assessee and upheld the penalty levied by the Ld.AO. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in further appeal before the Tribunal by raising the following grounds of appeal: "1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the ....

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....arly understood the nature of charge against him as it is evident from his reply to the notice U/s. 274 r.w.s 271(1)(c) of the Act and therefore no prejudice is done to the assessee by simply not mentioning the reason in the notice and that solely does not render the notice invalid. 6. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. As per the provisions of section 271(1)(c) of the Act, it is mandatory to mention the reason in the notice as to whether the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. We have also carefully gone through the notice issued U/s. 274 r.w.s 271(1)(c) of the Act, dated 28/03....