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Income Tax Appellate Tribunal, BANGALORE BENCH ‘SMC’, BANGALORE
Before: SHRI A.K.GARODIA, ACCOUNANT MEMBER
O R D E R PER A. K. GARODIA, A.M.
This appeal is filed by the assessee. This is directed against the order of learned CIT (A) - 7 Bengaluru dated 20.06.2016 for A. Y. 2010 – 11.
The assessee has raised as many as 6 grounds but the only grievance of the assessee is about penalty of Rs. 76,585/- imposed u/s 271 (1) (c) of I.
T. Act.
Learned AR of the assessee submitted that the A.O. in the notice issued by him u/s 271 as available on page 24 of the Appeal Memo has not specified the charge for levying the penalty as to whether it is for concealment of Income or for furnishing of inaccurate particulars of income.
Thereafter he submitted that under these facts, the penalty cannot be levied as per the judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. Manjunatha Cotton and Ginning Factory as reported in 359 ITR
Learned DR of the revenue supported the order of CIT (A).
I have considered the facts of the case and gone through the orders of the lower authorities and the judgment cited by the learned AR of the assessee and I find that in the facts of the present case as noted above and as per the judgment of Hon’ble Karnataka High Court rendered in the case of CIT vs. Manjunatha Cotton and Ginning Factory (Supra), the penalty order passed by the A.O. and approved by CIT (A) is not sustainable. Hence, the penalty is cancelled.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on the date mentioned on the caption page.