M/S. MANIMAYA HOLDINGS PVT. LTD.,KOLKATA vs. ITO, WARD - 12(3), KOLKATA

This is an appeal preferred by the assessee against the order of the Ld. CIT(A)-24, Kolkata dated 24.01.2019 for AY 2005-06 against the confirmation of penalty order passed u/s. 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).

None appeared for the assessee. However it is noted that the main grievance of the assessee is against the ex parte order passed by the Ld. CIT(A) without hearing the assessee. According to the assessee, the penalty order passed by the AO (ITO, Ward-12(3), Kolkata) is bad in law. According to assessee, the AO has initiated the penalty proceedings u/s. 271(1)(c) of the Act for concealment of income and furnishing of inaccurate particulars of income which fact has been noted by the Ld. CIT(A) in para 3 of the impugned order. According to the assessee since there is legal infirmity in the show cause notice, the consequent order of the AO imposing penalty itself is bad in law as held by the Hon’ble High Courts in plethora of decisions. Therefore, according to the assessee, the penalty order itself is bad in law. However, it is noted that the Ld. CIT(A) has not decided the legal issue raised by the assessee as ground no. one (1) wherein the assessee has assailed the decision of the AO passed u/s. 271(1)(c) of the Act as bad in law which encompasses the legal issue of infirmity in the notice issued prior to levy of penalty u/s 271(1)(c) of the Act. According

In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 18th August, 2021.