SHRIPRAKASH PRALHADRAI AGRAWAL,NAGPUR vs. INCOME TAX OFFICER, WARD-3(2), NAGPUR

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ITA 40/NAG/2020Status: DisposedITAT Nagpur22 September 2023AY 2009-10Bench: SHRI SATBEER SINGH GODARA (Judicial Member), DR. DIPAK P. RIPOTE (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 penalty proceedings were vitiated because the Assessing Officer's show cause notice under Section 274 did not specify whether the case was for concealment of income or furnishing inaccurate particulars. Therefore, the penalty was invalid.

What were the facts?

The assessee appealed against a penalty imposed under Section 271(1)(c) of the Income Tax Act. The penalty was upheld by the CIT(A).

What were the issues?

The primary issue was the validity of penalty proceedings due to a defective show cause notice that failed to specify the exact nature of the default (concealment or inaccurate particulars).

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

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Income Tax Appellate Tribunal, NAGPUR BENCHES : NAGPUR

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE

Hearing: 01.09.2023Pronounced: 22.09.2023

THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.40/Nag./2020 Assessment Year 2009-2010 Shriprakash Pralhadrai Income Tax Officer Agrawal Ward-3(2), Nagpur Resham Oli, Jagnath vs. Budhwari, Nagpur-440002 PAN: ABDPA5823B (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Adv. For Revenue : Shri Sanjay Agrawal, DR Date of Hearing : 01.09.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M.

This assessee’s appeal for A.Y. 2009-10, arises against the CIT(A)-2, Nagpur’s order dated 18.11.2019, passed in Case No.CIT(A)-2/163/2016-17, 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.4,25,010/- in the Assessing Officer’s corresponding order dated 31.03.2009 as upheld in the CIT(A)’s lower appellate discussion, we note at the outset that the former’s show cause notice issued under Section 274 of the Act

2 ITA.No.40/Nag./2020 (Shriprakash P. Agrawal vs. ITO dated 02.02.2016 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. ACIT [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 22.09.2023

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