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Income Tax Appellate Tribunal, CAMP BENCH AT JALANDHAR
Before: Sh. N. K. Saini, Hon’ble & Sh. Ravish Sood
IN THE INCOME TAX APPELLATE TRIBUNAL CAMP BENCH AT JALANDHAR Before Sh. N. K. Saini, Hon’ble Vice President and Sh. Ravish Sood, Judicial Member ITA No.386/Asr./2018 : Asstt. Year : 2006-07 M/s Ganesha Ram Ujagar Mal, Vs Income Tax Officer, C/o Sh. Dinesh Sarna, Adv., Nakodar B-18, Vakil Building, Model Town Road, Jalandhar (APPELLANT) (RESPONDENT) PAN No. AACFG7458E Assessee by : Sh. Ashray Sarna, CA Revenue by : Sh. Amit Kumar Aggarwal, DR Date of Hearing : 11.01.2019 Date of Pronouncement : 17.01.2019
ORDER Per N. K. Saini, Vice President: This is an appeal by the assessee against the order dated 02.04.2018 of ld. CIT(A)-2, Jalandhar.
Following grounds have been raised in this appeal: “1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned assessment order u/s 271(1)(c) and without complying with the mandatory conditions u/s 271 as envisaged under the Income Tax Act, 1961. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned assessment order u/s 271(1)(c) without considering the fact that notice
ITA No. 386/Asr./2018 2 Ganesha Ram Ujagar Mal issued u/s 274 r.w.s. 271 dated 30.12.2008 is not specific that on which limb of section 271(1)(c), penalty is initiated. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned assessment order u/s 271(1)(c) without considering the submissions of the assessee and without observing the principles of natural justice. 4. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.” 3. Facts of the case in brief are that the assessee filed the return of income on 22.08.2006 declaring an income of Rs.35,879/- which was processed u/s 143(1)(a) of the Income Tax Act, 1961 (hereinafter referred to as the Act). Later on, the case was selected for scrutiny and the assessment was framed at an income of Rs.22,35,879/- by making the addition of Rs.22,00,000/-. The AO also initiated the penalty proceedings for furnishing of inaccurate particulars of income. The AO levied the penalty of Rs.7,40,549/-.
Being aggrieved the assessee carried the matter to the ld. CIT(A) who sustained the penalty levied by the AO.
Now the assessee is in appeal. The ld. Counsel for the assessee submitted that the AO in the penalty notice had not specified the specific charge for which the penalty has been levied. Our attention was drawn towards the notice u/s 274 r.w.s. 271 of the Act dated 12.01.2016 (copy of which is placed on record). The reliance was placed on the decisions of various Courts as cited before the ld. CIT(A). Reliance was also placed on the decision of the ITAT
ITA No. 386/Asr./2018 3 Ganesha Ram Ujagar Mal Delhi Bench “A”, New Delhi in the case of Aman Mehtani Vs DCIT, CC-I, Faridabad in ITA No. 4325/Del/2016 for the assessment year 2010-11, order dated 22.11.2017.
In his rival submissions, the ld. DR supported the impugned order passed by the ld. CIT(A).
We have considered the submissions of both the parties and perused the material available on the record. It is noticed that an identical issue having similar facts has been adjudicated by the ITAT Delhi Bench ‘A’, New Delhi in the case of Aman Mehtani Vs DCIT (supra) wherein one of us (Vice President) is a co-signatory in the said order dated 22.11.2017, it has been held as under: “8. We have heard both the parties and perused the material available on record. There is no concealment in the present case. The Assessee has also filed all the details during the regular assessment proceedings. From the notice dated 28.12.2011 produced by the Ld. AR during the hearing, it can be seen that the Assessing Officer was not sure under which provisions of Section 271 of the Income Tax Act, 1961, the assessee is liable for penalty. The issue is squarely covered by the decision of the Hon'ble Supreme Court in case of M/s SSA’ Emerald Meadows. The extract of the Hon’ble Karnataka High Court in M/s. SSA’ Emerald Meadows are as under which was confirmed by the Hon’ble Apex Court: "3. The Tribunal has allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under Section 274 read with Section 271(l)(c) of the Income Tax Act, 1961 (for short ‘the Act’) to be bad in law as it did not specify which limb of Section 271(l)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the assessee, has relied on the decision of the Division Bench of this Court rendered in the case of COMMISSIONER OF INCOME TAX -VS- MANJUNATHA COTTON AND GINNING FACTORY (2013) 359 ITR 565.
ITA No. 386/Asr./2018 4 Ganesha Ram Ujagar Mal
In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court. The appeal is accordingly dismissed. ”
Since, the facts of the present case are similar to the aforesaid referred to case. So, respectfully following the aforesaid referred to order dated 22.11.2017, the impugned penalty levied by the AO and sustained by the ld. CIT(A) is deleted.
In the result, the appeal of the assessee is allowed. (Order Pronounced in the Court on 17/01/2019)
Sd/- Sd/- (Ravish Sood) (N. K. Saini) JUDICIAL MEMBER VICE PRESIDENT Dated: 17/01/2019 *Subodh* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5.DR: ITAT ASSISTANT REGISTRAR