TaxTMI 
TaxTMI 
2025 (3) TMI 2271
X X X X Extracts X X X X
X X X X Extracts X X X X
.... AO and further erred in levying penalty u/s 271(1)(c) in respect of a search assessment u/s 143(3) r.w.s. 153A ignoring that; i. AO had failed to re-compute the Annual Letting Value as per the direction of ITAT, and was yet to give effect to the order of ITAT ii. provisions of S. 271(1)(c) were inapplicable to the case of search assessments iii. the addition was made vide an order u/s 153A, iv. the addition was in respect of such income for which no incriminating material was available, v. the addition was not sustainable in law, vi. the penalty was initiated without specifying any charge in the assessment order or penalty notices or penalty orders, vii. the appellant was prevented by a reasonable cause, viii. the order passed was beyond the time permissible u/s 275, ix. passing an order dt. 02.03.2022 u/s. 271(1)(c) in respect of the proceedings which had been time barred by operation of law and provisions of S. 275 of the Income Tax Act, x. levying penalty u/s. 271(1)(c) simply by relying on the order of assessment without examining the facts afresh in penalty proceedings, xi. the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er within the time prescribed under the law on passing the order by CIT(A) on merit of the case. (c) Your appellant prays that an order passed in specific violation of s. 275 be quashed. GROUND NO. 3: SERIOUS VIOLATION OF NATURAL JUSTICE AND OF S. 274 AND S. 275 (a) The Id. CIT(A) erred in law in confirming the order of the AO in gross violation of the provisions of natural justice; i. by denying any opportunity to your appellant to present the case on merits. ii. by not giving effect to the order of ITAT on merits of the case, iii.in not giving any opportunity to show cause on merits as to why penalty shall not be levied. (b) Your appellant submits that the Id. AO has grossly violated the provisions of natural justice, (c) Your appellant pleads that a penalty order passed in violation of the provisions of natural justice be quashed. AY 2015-16 "GROUND NO. 1: LEVY OF PENALTY U/S 271(1)(c) OF RS. 92,566/- (a) The Id. CIT(A) erred in law and on facts in confirming the levy of penalty u/s. 271(1)(c), for concealment of income, by ld. AO of Rs. 92,566/-being 100% of the tax on notional in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....two offences and instead levy penalty for allegedly concealing the particulars of income by furnishing inaccurate particulars of income, xviii. in initiating penalty proceedings without recording his satisfaction in the assessment order or in notice that the facts recorded in assessment satisfied him to initiate penalty proceedings. xix. levying the penalty without giving any opportunity to your appellant to present the case on merits as to why penalty be not levied, xx. ignoring the explanations furnished by the appellant in good faith vide letter dt. 07.08.2024, 16.10.2024, 19.11.2024 and 22.11.2024 in response to the Show Cause Notice dt.11.07.2024, 10.10.2024 and 08.11.2024 b) Your appellant strongly submits that the appellant had furnished accurate particulars of income for the year under consideration. (c) Your appellant prays that the penalty of Rs. 92,566/- levied u/s. 271(1)(c) of the Act be deleted. GROUND NO. 2: VIOLATION OF PROVISION OF S. 275 (a) The Id. CIT(A) erred in law and on in facts in confirming the order of penalty passed by AO in violation of limitation u/s 275 of the Act. (b) Your appell....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng penalty u/s. 271(1)(c) simply by relying on the order of assessment without examining the facts afresh in penalty proceedings. xi. the appellant had requested the ld. AO for extension of time pending the adjudication of appeal on merits of the case by the ITAT, xii. levying the penalty @ 100% of tax when there had been no concealment of income and appellant had furnished accurate particulars of income. xiii. ignoring the fact that the appellant had determined the total income as per the provisions of the Income Tax Act, xiv. by simply relying on the finding in the assessment order without in any manner applying his mind as to whether in the assessment order could be construed to represent any concealment of income, xv. without determining whether the assessee had furnished any inaccurate particulars of income or concealed income xvi. ignoring that the appellant had neither furnished accurate particular of income and nor had concealed any income. xvii. without identifying one of the two offences for which he proposed to levy penalty and informing the same to your appellant for responding to the same and further erred ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Y 2014-15 is taken up as a lead case. ITA No. 246/Mum/2025 for AY 2014-15 4. This appeal is filed against the confirmation of penalty u/s 271(1)(c) of the Act by Ld. CIT(A) vide order dated 28.11.2024. A penalty of Rs. 24,11,180/- was imposed by the Ld. AO vide order dated 02.03.2022 in respect of the undisclosed notional income from house property. The same was partly upheld by the Ld. CIT(A). Aggrieved with the order of Ld. CIT(A), the assessee has preferred an appeal before the Tribunal. 5. Brief facts in this case are that the assessment u/s 143(3) r.w.s. 153C was completed on 29.03.2017 determining total income at Rs. 1,13,14,600/-. Vide order dated 02.03.2022, the Ld. AO also initiated therein, penalty proceedings u/s 271(1)(c) in respect of the additions made as under: i. Undisclosed income from seized documents Rs. 68,38,600/- ii. Undisclosed income from house property Rs. 3,91,461/- In the quantum appeal, Ld. CIT(A) deleted the addition on account of undisclosed income from seized documents of Rs. 68,38,600/- and partly confirmed the addition on account of undisclosed notional income from house property . Even though the second appeal of th....