2024 (10) TMI 742

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.....2023 for the Assessment Year 2014-15. 2. Brief facts of the case are, the Assessing Officer completed the assessment under section 143 (3) of the Income-tax Act, 1961 (for short 'the Act') on 26.12.2016 at an income of Rs. 379,64,74,760/-. Assessing Officer initiated the penalty proceedings by way of issuance of the notice u/s 271(1)(c) of the Act read with section 274. Disagreeing with the contentions raised by the assessee, AO reached at the conclusion that the assessee has furnished inaccurate particulars of income in order to decrease its tax liability and thereby levied a penalty of Rs. 55,95,68,564/- @ 100% u/s 271(1)(c) of the Act. 3. Aggrieved with the above order, assessee preferred appeal before the ld. CIT (A) and before l....

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....IT vs. Sahara India Life Insurance Co. Ltd. 432 ITR 84 (Del.) & Pr. CIT vs. Gopal Kumar Goyal (2023) 153 taxmann.com 534 (Delhi), ld. Counsel for the assessee pleaded that the penalty order is liable to be quashed. 9. On the other hand, ld. DR for the Revenue objected to the above submissions and relied upon the orders of the authorities below. 10. Considered the rival submissions and perused the material placed on record. The Assessing Officer has not specified the relevant limb for initiation of penalty proceedings in the notice issued u/s 274 of the Act. For the sake of clarity, the same is reproduced below :- 10.1 We note that assessee has duly raised issue against the assumption of jurisdiction for the levy of section 271(1)(c....

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....whether penalty was for concealment or furnishing of inaccurate particulars of income, we direct that the penalty in this case is liable to be deleted. Hence, we set aside the orders of the authorities below and decide the issue in favour of the assessee and accordingly directed to delete the penalty. 10.3 Since we have already quashed the penalty on the jurisdictional issue, the merits of the penalty levied are not being adjudicated at this stage being academic in nature. 11. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on this 9th day of August, 2024. ============= Document 1 Government of India Ministry of Finance INCOME TAX DEPARTMENT Office of the Deputy Commissio....