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Income Tax Appellate Tribunal, PUNE BENCHES “B” : PUNE
Before: SHRI SATBEER SINGH GODARA & SHRI GD PADMAHSHALI
ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for Assessment Year 1998- 1999 is directed against the Commissioner of Income Tax (Appeals), Pune-11, Pune’s Din & Order No.ITBA/APL/S/250/2022-23/1049151119(1), dated 27.01.2023, involving proceedings u/s.271(1)(c) of the Income Tax Act, 1961 [in short “the Act”].
Heard both the parties. Case file perused.
Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law
2 ITA.No.721/PUN/2023 and on facts in imposing the section 271(1)(c) penalty of Rs.1,24,557/-, it emerges at the outset that the Assessing Officer’s corresponding penalty show cause notice dated 30.03.2005 issued to the taxpayer had nowhere specified or struck-off the relevant limb as to whether he had concealed particulars of his income or furnished inaccurate particulars of such an income, as the case may be.
Faced with the situation, we quote hon’ble jurisdictional high court’s recent Full Bench landmark decision in Mohd. Farhan A.Shaikh Vs. ACIT 434 ITR 1 (Bom) has settled the law that the above stated failure on the Assessing Officer’s part indeed vitiates the entire penal proceedings itself. We thus delete the impugned penalty for this precise reason alone. Ordered accordingly.
This assessee’s appeal is allowed.
Order pronounced in the open Court on 01.11.2023.