2024 (11) TMI 490

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....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. 6,98,72,190/-. 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. 1,05,66,374/- @ 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 ld. CIT (A), assessee has made elaborate submissions. After considering the above submissions, ld. C....

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....the Revenue objected to the above submissions and relied upon the orders of the authorities below. 7. 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 :- 8. We note that assessee has duly raised issue against the assumption of jurisdiction for the levy of section 271(1)(c) that in the penalty notice, relevant limb was not specified whether the penalty proceedings were initiated for concealment of income or furnishing of inaccurate particulars of income. When the same was not so specified in the penalty notice it has been....

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....gly directed to delete the penalty. 10. 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 22nd day of October, 2024. ============= Document 1 I.T.N.S.-29 Notice under section 274 read with section 271(1)(c) of the Income-tax Act, 1961 Income Tax Office, Nainital Dated: 16-10-2015 G.M(A) | Account officer To, M/s Kumaon Mandal Vikas Nigam Ltd. Oak Park, Mallital, Nainital. Whereas in the course of proceedings before assessment year 2012-13 it appears to me that you:- ....