MAHAVIR SINGH ,HARYANA vs. ITO, WARD 2(4), HARYANA

This assessee’s appeal for Assessment Year 2014-15, arises against the CIT(A)-1, Gurgaon’s case No. 133/17-18 dated 25.07.2018, in proceedings u/s 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties at length. Case file perused.

It emerges at the outset during the course of hearing that both the learned lower authorities have held the assessee to have furnished it’s inaccurate particulars of income regarding short term capital gains arising from a joint development Mahavir Singh agreement, to levy section 271(1)(c) penalty in question amounting to Rs.12,77,097/- vide Assessing Officer’s order dated 29.06.2017 which stands upheld in the CIT(A)’s detailed discussion.

The assessee has first of all sought to raise the additional ground(s) that once the learned Assessing Officer had admittedly issued his penalty show-cause notice u/s 271(1)(c) r.w.s. 274 of the Act not specifying any specific limb thereunder, his failure to this effect vitiates the entire proceedings. The Revenue on the other hand has vehemently objected to admission of the assessee’s instant additional ground at this belated stage. We are of the considered view that hon’ble apex court landmark decision in National Thermal Power Co. Ltd. vs. CIT (1998) 229 ITR 383 (SC) has settled the issue long back in assessee’s favour and against the department that the tribunal could very well entertain such an additional ground to determine correct tax liability provided all the relevant facts form part of the record. We make it clear that the Revenue has nowhere disputed the contents of the learned Assessing Officer’s show-cause notice dated 26.07.2017 herein.

All other pleadings in merit in the assessee’s instant appeal stand rendered academic.

This assessee’s appeal is allowed. Order Pronounced in the Open Court on 27/01/2025.