SURJIT KAUR UBEROI,KOLKATA vs. A.C.I.T., CIRCLE - 29, KOLKATA, KOLKATA

Assessment Year: 2013-2014 Surjit Kaur Uberoi 2. The solitary grievance of the assessee is that ld. CIT(Appeals) has erred in confirming the penalty of Rs.77,65,050/- imposed by the ld. Assessing Officer under section 271(1)(c) of the Income Tax Act. On the strength of the following decisions (whose copies have been placed on record):- (i) Pr. CIT-19, Kolkata- I.T.A.T. No. 306 vs. Dr. Murari Mohan of 2017, G.A. No. Koley- High Court at 2968 of 2017 Calcutta (ii) Pr. CIT (Central) –vs.- 2021 (3) TMI 195 M/s. Golden Peace –SC Order- Hotels & Resorts Pvt. Petition for Limited- Special Leave to Supreme Court order Appeal (c) No. –SLP 9919/2020 Bombay High Court - 2020(2) TMI 333, Appeal Tax Appeal No. 13 of 2019 (iii) Pr. CIT, Central-1, ITA 14 of 2019, Kolkata-vs.- M/s. GA 3412 of 2018 Basanti Properties Pvt. Limited- Calcutta High Court (iv) M/s. Conquer Barter ITA No. Pvt. Limited –vs.- 372/KOL/2020 Income Tax Officer- order dated Income Tax 09.01.2023 Appellate Tribunal

Ld. Counsel for the assessee has contended that in the show-cause notice issued under section 274 read with section 271(1)(c) , the ld. Assessing Officer has not specified the charges against the assessee for visiting with penalty under section Assessment Year: 2013-2014 Surjit Kaur Uberoi 271(1)(c) of the Income Tax Act. He took us through copy of the show-cause notice available on page no. 1 of the paper book.

The ld. D.R., on the other hand, contended that penalty was initiated in the assessment order for furnishing of inaccurate particulars, which lead to concealment of income. This aspect has been specified even in the penalty order. He took us through the penalty order. However, he was unable to controvert the contention of the assessee about the show-cause notice.

We have duly considered the rival contentions and gone through the copy of the show-cause notice available on page no. 1 of the paper book. It is very debatable issue across the country, whether penalty could be imposed upon an assessee in the absence of any specific charge in the show-cause notice issued under section 274 read with section 271(1)(c) of the Income Tax Act. In other words, the ld. Assessing Officer is required to specify the charge on which an assessee has to give explanation, namely whether penalty is to be imposed upon the assessee for concealment of income or for furnishing of inaccurate particulars. In the judgments cited before us, this question has been answered in favour of the assessee, i.e. in case, the charge is not specified in the show-cause notice, then penalty would not be imposable upon the assessee. Assessment Year: 2013-2014 Surjit Kaur Uberoi 6. On due consideration of the above aspect, we are of the view that penalty imposed upon the assessee of Rs.77,65,050/- is not sustainable, it is deleted.