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Income Tax Appellate Tribunal, DELHI BENCH ‘C’ : NEW DELHI
Before: SHRI O.P.KANT & SHRI KULDIP SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘C’ : NEW DELHI) BEFORE SHRI O.P.KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.2645/Del./2017, A.Y. 2008-09 ITA No.2646/Del./2017, A.Y. 2009-10 ITA No.2647/Del./2017, A.Y. 2010-11 Smt. Harmeet Kaur Sran Vs. DCIT 527B, 5th Floor, HBN Office, Central Circle-29 D-Mall Distt. Centre, Paschim Vihar, New Delhi New Delhi PAN : AACCC9064B (APPELLANT) (RESPONDENT) ASSESSEE BY : Ms. Ashisha Mittal, CA REVENUE BY : Shri S.N.Meena, Sr. DR Date of Hearing : 14.11.2019 Date of Order : 29.11.2019
O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : Since the identical issues has been raised in all the aforesaid appeals on the basis of identical set of facts and circumstances, the same are being disposed of by way of composite order to avoid repetition of discussion.
The appellant, Smt. Harmeet Kaur Sran, New Delhi (hereinafter referred to as 'the assessee’) by filing the aforesaid appeals, sought to set aside the impugned orders dated 30/01/2017 passed by Ld. Commissioner of Income Tax(Appeals)-30, New Delhi confirming the penalty u/s 271(1)(c) of the Act levied by the AO on the identical grounds inter alia that : “1. Under the facts and the circumstances of the case, penalty order passed u/s 271(1 )(c) of the Act by the Id. A.O. and confirmed by the Id. CIT(A) is invalid & bad in law as from the notice issued u/s 274 r.w.s 271(1)(c) of the Act it is not discernable as to whether the penalty proceedings was initiated for furnishing of inaccurate particulars of income or concealment of income and therefore, the impugned penalty order passed deserves to be quashed. 2. Under the facts and circumstances of the case, the Id. CIT(A) has grossly erred in passing the appellate order without affording adequate opportunity of being heard to the appellant.
Under the facts and circumstances of the case, the Ld.First Appellate Authority has grossly erred in upholding the action of ld. Assessing Authority imposing the penalty of 5,62,988/-, 83,246/- and 18,972/- u/s 271(1 )(c) of the Income Tax Act, 1961 for A.Y. 2008-09, 2009-10 and 2010-11 respectively which is highly injudicious, unwarranted, against the facts of the case and bad at law.
4. The appellant prays for leave to add, amend, alter or withdraw any grounds of appeal.
3. Briefly stated the facts necessary for adjudication of the controversy at hand are : on the basis of assessment orders framed u/s 143(3), 153A of the Act at the income of Rs. 18,38,000/- , 5,96,074/- and 5,65,920/- for A.Y. 2008-09, 2009-10 and 2010-11 respectively by making addition on account of income from undisclosed sources, unexplained and undisclosed investment, the penalty proceedings were initiated u/s 271(1)(c) of the Act.
Declining the contention raised by the assessee, assessing officer levied the penalty to the tune of Rs. 5,62,988/- , 83,246/- and 18,972/- @ 100% of tax sought to be evade by the assessee for A.Y. 2008-09, 2009-10 and 2010-11 respectively.
Assessee carried the matter by way of an appeal before the ld. CIT (A) who has confirmed the penalty by dismissing the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal.
We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.
Undisputedly, a search and seizure operation was carried out at the business / residential premises of assessee on 20/11/2009 being part of HBN group of cases and consequently proceeding u/s 153A were initiated. It is also not in dispute that in response to the notice assessee filed a return declaring nil income and accordingly assessment was completed u/s 153A of the Act. It is also not in dispute that during the search and seizure operation no incriminating material was seized from the premises of the assessee.
In the backdrop of the aforesaid facts and circumstances of the case, order passed by the lower authorities and arguments addressed by the authorized representatives of both the parties, the sole question arises for determination in this case is:-
“as to whether the assessee has concealed particulars of income or has furnished inaccurate particulars of income during assessment proceedings?”
Ld. AR for the assessee contended that in order to initiate the penalty proceedings, the AO has failed to specify in the show- cause notice issued u/s 271(1)(c)/274 of the Act if the assessee has concealed 4 ITA No.2550/Del./2016 the particulars of income or has furnished inaccurate particulars of income and relied upon the decisions of Hon’ble Karnataka High Court in case of CIT vs. Manjunatha Cotton and Ginning Factory-359ITR 565, CIT vs. SSA’s Emerala Meadows -73 taxmann.com 241 (Kar.)
(Revenue’s SLP dismissed in 242 taxman 180) and Hon’ble High Court of Delhi in Pr. CIT vs. Sahara India Life Insurance Company Ltd. in ITA 475/2019 order dated 02.08.2019.
In order to proceed further, we would like to peruse the notices issued by AO u/s 274 read with section 271(1)(c) of the Act to initiate the penalty proceedings for A.Y. 2008-09, 2009-10 and 2010-11 which are extracted as under for ready perusal:-
“NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961. (A.Y. 2008-09)
Asstt. Commissioner of Income Tax Central Circle 4, New Delhi. Dated: 23.12.2011 To Smt. Harmeet Kaur Sran M-105, Guru Har Kishan Nagar Paschim Vihar, New Delhi Whereas in the course of proceedings before me for the assessment year 2008-09 it appears to me that you :- have without reasonable cause failed to comply with a notice under section 142(1)/143(2) of the Income Tax Act, 1961 dated……… have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1, 2,3,4 and 5. Undisclosed Income in the case of search.
You are hereby requested to appear before me at 11.30 AM/PM on 23/01/12 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person of through authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made under section 271.
Sd/- Assessing Officer, Asstt. Commissioner of Income Tax Central Circle 4, New Delhi”
“NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961. (A.Y. 2009-10)
Asstt. Commissioner of Income Tax Central Circle 4, New Delhi. Dated: 23.12.2011 To Smt. Harmeet Kaur Sran M-105, Guru Har Kishan Nagar Paschim Vihar, New Delhi
Whereas in the course of proceedings before me for the assessment year 2009-10 it appears to me that you :- have without reasonable cause failed to comply with a notice under section 142(1)/143(2) of the Income Tax Act, 1961 dated……… have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1, 2,3,4 and 5. Undisclosed Income in the case of search.
You are hereby requested to appear before me at 11.30 AM/PM on 24/01/12 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person of through authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made under section 271.
Sd/- Assessing Officer, Asstt. Commissioner of Income Tax Central Circle 4, New Delhi”
“NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961. (A.Y. 2010-11)
Asstt. Commissioner of Income Tax Central Circle 4, New Delhi. Dated: 23.12.2011 To Smt. Harmeet Kaur Sran M-105, Guru Har Kishan Nagar Paschim Vihar, New Delhi Whereas in the course of proceedings before me for the assessment year 2010-11 it appears to me that you :- have without reasonable cause failed to comply with a notice under section 142(1)/143(2) of the Income Tax Act, 1961 dated……… have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1, 2,3,4 and 5. Undisclosed Income in the case of search.
You are hereby requested to appear before me at 11.30 AM/PM on 24/01/12 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person of through authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made under section 271.