2025 (10) TMI 688

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....s return of income for AY 2011-12 on 09.11.2011 declaring a total income of Rs. 2,00,784/-. Subsequently, an assessment order was passed u/s 143(3) of the Act on 18.03.2014, at a total income of Rs. 39,17,800/-. While passing the assessment order the AO made an addition of Rs. 37,17,017/- towards undisclosed investment u/s 69 of the Act Rs. 17,79,415/- difference in cash balance treated as unexplained money for Rs. 1,04,403/-, concealed sales of 'note pads' for Rs. 1,00,000/-, outstanding liability appearing in the balance sheet for Rs. 8,99,080/- and on payment to parties without making TDS for Rs. 8,34,119/-. Thereafter penalty proceedings u/s 271(1)(c) was initiated for each addition. Being aggrieved to the order u/s 143(3), the asses....

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....ITAT, Mumbai in Jatin Enterprises vs. ACIT, Circle-19(2), Mumbai in ITA NO. 3885/Mum/2023. He has also cited following decisions: i) DCIT vs. Shyam Kundandas Gyanchandani, ITA No. 2559/Mum/2022 for AY 2009- 10, decided on 03.02.2023. ii) Fancy Diamond India Pvt. Ltd. vs. DCIT, ITA No. 961 to 963/Mum/2023, for AY 2010-11 to AY 2012-13, decided on 20.06.2023. iii) Sushila Goyal vs. ITO, ITA No. 3012/Del/2019 for AY 2014-15 decided on 31.05.2023. 5. Contrary to that the ld. D.R supports the impugned order. 6. Upon hearing the submissions of the ld. Counsel of the respective parties, we find that there is no denying to this fact that the AO has initiated a penalty proceeding on account of concealment of income a....

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....red above, we hold penalty levied u/s. 271(1)(c) of the Act unsustainable. Ergo, the Assessing Officer is directed to delete the penalty. 7. Further, during the study of appeal file we find that the assessee has placed on record penalty notice u/s. 274 r.w.s 271 of the Act dated 25/03/2015. A perusal of the notice reveals that it is in a pre-drafted Performa and mentions both limbs of section 271(1)(c) of the Act as, "have Concealed the particulars of your income or ........ Furnished inaccurate particulars of such income." The Assessing Officer has not struck off irrelevant clauses in the notice. The Hon'ble Jurisdictional High Court in the case of Mohd. Farhan A. Shaikh vs. DCIT, 125 taxmann.com 253 (Bombay) held that where Asses....