2025 (12) TMI 1522

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....respect of the Assessment Year (AY) 2004-05, whereby the ITAT has allowed three appeals filed by the respondent/Assessee in respect of AY 2002-03 to AY 2004-05. 2. The ITAT in paragraphs 3 to 8 has held as under:- "3. The Assessing Officer made addition of Rs. xxxx/- to the total income on account of the unsecured loans received during the F.Y. 2003-04. Consequent to the addition, penalty u/s. 271(1)(c) has been levied by the AO. 4. We find that the page no. 10 below para 8.1, the Assessing Officer has also mentioned "that penalty proceedings u/s 271(1)(c) are being initiated separately." 5. We find that the para no. 1 of the penalty order reads as under: "Penalty proceedings u/s 271(1)(c) of I.T. Act ....

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.... sought to be imposed as the assessee should know the grounds which he has to meet specifically. 4) The aforesaid principle has been reiterated in the in the case of CIT vs. SSA'S Emerald Meadows: 73 taxmann.com241 (Kar) [Revenue's SLP dismissed in 242 Taxman 180] 8. Hence, respectfully following the order of the Hon'ble Jurisdictional High Court, the penalty levied is hereby obliterated." 3. At the outset, Mr Ruchir Bhatia, learned SSC appearing for the appellant/Revenue states that this appeal is confined to the AY 2004-05 and he has no instructions with regard to the appeals pertaining to AY 2002-03 and AY 2003-04. 4. The issue which arose for the consideration of the ITAT was primarily, whether the penalty pr....

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....(1) /143(3) of the Income Tax Act, 1961 dated............ *have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1,2,3,4 and 6/Undisclosed income in the case of search. You are hereby requested to appear before me at 4.30AM/PM on ....... and show cause why an order imposing a penalty on you should not be made under Section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorised representative, you may show cause in writing on or before the said date which will be considered before any such order is made under Section 271. Assessing Officer Asstt. Commissioner of Income Ta....