AJIT NARAYAN PATIL. KOLHAPUR,KOLHAPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KOLHAPUR, KOLHAPUR

Coming to the assessee’s sole substantive ground seeking to reverse both the learned lower authorities action in 2 ITA.No.640/PUN./2023 Shri Ajit Narayan Patil, Kolhapur. imposing sec.271(1)(c) penalty of Rs.6,71,442/- in law as well as on facts, it transpires during the course of hearing that the same hardly requires us to delve deeper in the relevant factual matrix.

Learned counsel at the outset invited our attention to the case records wherein the Assessing Officer’s Section 143(3) r.w.s. 153A assessment dated 23.12.2019 as well as his penalty notice u/s.271(1)(c) r.w.s. 274 of the Act, of the very date, had alleged “concealment” of particulars of income whereas the impugned penalty order dated 27.10.2021 has held him to have furnished inaccurate particulars of such income.

This clinching fact aspect has gone un-rebutted from the Revenue side. All what has been argued at the Revenue’s behest is that both the learned lower authorities have afforded adequate opportunities of hearing regarding concealment of particulars of income as well as furnishing of inaccurate particulars of income, as the case may be. We find no reason to concur with the Revenue’s stand supporting the impugned penalty of Rs.24,98,490/- as hon’ble jurisdictional high court’s recent landmark decision in Mohd. Farhan A.Shaik vs. ACIT [2021] 434 ITR 1 (Bom.) (FB) has settled the law that such a penalty, in absence of the corresponding limb being satisfied, does not 3 ITA.No.640/PUN./2023 Shri Ajit Narayan Patil, Kolhapur. deserve to be upheld even at the stage of show cause notice itself. Faced with the situation, we accept the assessee’s vehement contentions seeking to reverse the impugned penalty in very terms. ordered accordingly.

This assessee’s appeal is allowed in above terms. Order pronounced in the open Court on 25.10.2023.