JAIKUMAR BHAGWANTPRASAD BAJAJ,NAGPUR vs. INCOME TAX OFFICER, WARD -3(4), NAGPUR

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ITA 356/NAG/2019Status: DisposedITAT Nagpur25 September 2023AY 2007-08Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI GD PADMAHSHALI (Accountant Member)2 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the show cause notice issued by the Assessing Officer under Section 274 did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars. This procedural defect vitiates the penalty proceedings.

What were the facts?

The assessee's appeal for AY 2007-08 challenges a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was upheld by the CIT(A) after being levied by the Assessing Officer.

What were the issues?

The primary issue was the validity of the penalty proceedings due to a vague show cause notice that failed to specify the exact nature of the offense under Section 271(1)(c).

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, NAGPUR BENCHES : NAGPUR

Before: SHRI SATBEER SINGH GODARA & SHRI GD PADMAHSHALI

Hearing: 29.08.2023Pronounced: 25.09.2023

THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA.No.356/Nag./2019 Assessment Year 2007-2008 Jaikumar Bhagwantprasad Income Tax Officer Bajaj Ward-3(4), Nagpur C/o Ankit Automobiles, vs. Khadgaon Road Pandey Layout, Wardi, Nagpur - 440023 PAN: ADEPB7560P (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Adv. For Revenue : Shri Sanjay Agrawal, DR Date of Hearing : 29.08.2023 Date of Pronouncement : 25.09.2023 ORDER PER SATBEER SINGH GODARA, J.M.

This assessee’s appeal for A.Y. 2007-08, arises against the CIT(A)-2, Nagpur’s order dated 11.09.2019, passed in Case No.CIT(A)-2/29/2015-16, in proceedings under section 271(1)(c)of the Income Tax Act, 1961 [“In short Act”].

2.

Heard both the parties. Case file perused.

3.

Coming to the assessee’s sole substantive grievance challenging correctness of both the lower authorities’ action imposing Section 271(1)(c) penalty of Rs.5,00,000/- in the Assessing Officer’s corresponding order dated 12.03.2015 as upheld in the CIT(A)’s lower appellate discussion, we note at the outset that 2 ITA.No.356/Nag./2019 Jaikumar B. Bajaj vs. ITO the former’s show cause notice issued under Section 274 of the Act dated 22.04.2014 had nowhere specified as to whether this is an instance of concealment or furnishing of inaccurate particulars of income. That being the case, we quote Mohd. Farhan A. Shaikh vs. DCIT [2021] 434 ITR 1 (Bom.) (FB) that such a failure at the Assessing Officer’s behest vitiates the entire proceedings.

4.

We accordingly reject the Revenue’s vehement arguments supporting the impugned penalty in very terms. The assessee succeeds in its sole substantive grievance therefore. Ordered accordingly.

5.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open court on 25.09.2023

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