G.S.EXPRESS PVT.LTD,LUCKNOW vs. DCIT-CC-2, LUCKNOW
In the result, the appeal is held to be partly allowed
ITA 633/LKW/2024[2018-19]Status: DisposedITAT Lucknow28 Aug 2025AY 2018-19
Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2018-19 G.S. Express Private Ltd., C-877 Vs. The D. Commissioner Of Income Mahanagar, Lucknow Tax, P.K. Complex, Ram Mohan Rai Marg, Lucknow Pan: Aaccg5655J (Appellant) (Respondent) Assessee By: Sh. Shubham Rastogi, C.A. Revenue By: Sh. Amit Kumar, Dr Date Of Hearing: 29.07.2025 Date Of Pronouncement: 28.08.2025 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Order Of The Ld. Cit(A)-3, Lucknow Under Section 250 Of The Income Tax Act, 1961, Dismissing The Appeal Of The Assessee Against The Orders Of The Ld. Ao, Imposing A Penalty Under Section 271B On 29.03.2022. The Grounds Of Appeal Are As Under: - “1-That The Ld. C.I.T. (A)-3, Lucknow Erred On Facts & In Law In Not Considering That The Show Cause Notice U/S 271B Of 1. T. Act Dated 31.12.2019, Did Not Specify That Whether The Penalty Is For Failure To Get Accounts Audited Or Failure To Furnish The Report & Thus Non Striking Of Irrelevant Clause Renders The Penalty Notice Invalid As Also The Consequential Penalty Order As Illegal & Liable To Be Quashed. Without Prejudice To Above 2-That The Ld. C.I.T. (A) Erred On Facts & In Law In Confirming Penalty Of Rs. 1,50,000/- U/S 2718 Of 1. T. Act, Without Appreciating That There Was A Reasonable Cause For Delay In Audit & Obtaining Report U/S 44Ab Of It Act As Due To Search & Seizure On 01.02.2018 The Entire Records Were Seized By Investigation Wing. 3-That The Ld. C.I.T. (A) Did Not Appreciate That Books Of Accounts & Related Records Were Seized By Investigation Wing & Only After Obtaining Copy Of Seized Documents
For Appellant: Sh. Shubham Rastogi, C.AFor Respondent: Sh. Amit Kumar, DR
Section 132Section 139Section 250Section 271Section 271BSection 44A
…or a failure to get the accounts audited. Since the ld. AO had failed to come to this 3 A.Y. 2018-19 G.S. Express Pvt. Ltd. conclusion, the notice that was issued was bad in law in terms of the judgment of the Hon’ble Supreme Court in the case of Ashok Pai 292 ITR 11 (SC), wherein the Hon’ble Court had held that, ‘concealment of income and furnishing of inaccurate particulars of income carried different connotations’. It was further argued that the Hon’ble Gujarat High Court in the case of Manu Engineering Works 122 ITR 306 and Hon’ble Delhi High Court in the case of CIT vs. Virgo Marketing Pvt. Ltd. 171 taxma…
