2024 (7) TMI 1423

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....R RENU JAUHRI (AM) :- The assessee has filed this appeal challenging the order dated 23-01-2024 passed by Ld CIT(A), NFAC, Delhi and it relates the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter "the Act") for AY 2014-15. 2. The assessee has raised the following grounds: - 1. On the facts and circumstances of the appellant's case and in law, the Ld. CIT(A) er....

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.... company filed its return declaring nil income from the business of real-estate during the year. The case was selected for scrutiny and assessment u/s 143(3) of the Act was made at nil income after disallowance claim of various allowances/expenses to the extent of Rs. 61,76,840/-. Penalty proceedings u/s 271(1)(c) of the Act were also initiated on the ground that the assessee had inflated its expe....

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.... dated 16.12.2016 has been filed before us. 5. We have heard the rival submissions. Even though, the Assessing Officer ("AO") had clearly mentioned in the assessment order that the assessee had furnished inaccurate particulars of income but at the time of issuing he did not strike off the irrelevant clause. As such, the notice issued by the Ld. AO was vague. There are various decisions on this ....

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....1(1)(c), read with section 274 of the IT Act. True, the assessment proceedings form the basis for the penalty proceedings, but they are not composite proceedings to draw strength from each other. Nor can each cure the other's defect. A penalty proceeding is a corollary, nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from....