Sambhaji Rambhau Bhalekar, Pune V. Income-tax Officer, Ward - 10(2), Pune

ITA 14/PUN/2022

AI Insights

The case involves an appeal by Sambhaji Rambhau Bhalekar against a penalty imposed by the Income Tax Officer, Ward 10(2), Pune, under Section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2011-12. The penalty was initially set at Rs.6,98,680 for alleged concealment of income or furnishing inaccurate particulars of income. The primary legal issue was the adequacy of the show cause notice issued by the Assessing Officer, which failed to specify the exact nature of the alleged misconduct. The Tribunal referenced the decision in Mohd. Farhan A. Shaikh vs. ACIT (2021) 434 ITR 1 (Bom)(FB) to support its finding that the defect in the show cause notice was fatal to the penalty's imposition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137522 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 02-01-2022
• Other Referred Cases: Mohd. Farhan A. Shaikh vs. ACIT (2021) 434 ITR 1 (Bom)(FB)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.14/PUN/2022 निर्धारण वषा / Assessment Year : 2011-12 Sambhaji Rambhau Bhalekar Thergaon, Chinchwad, Pune – 411033 PAN : AAOPB3196Q Vs. ITO, Ward 10(2), Pune Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : This assessee‟s appeal for AY 2011-12 arises against the National Faceless Appeal Centre (NFAC), Delhi‟s order dated 17-12-2021, passed in case No.ITBA/NFAC/S/250/2021- 22/1037898208(1), in proceedings under Section 271(1)(c) of the Income Tax Act, 1961, in short „the Act‟. Heard both the parties. Case file perused. Assessee by Shri M.K. Kulkarni Revenue by Shri M.G. Jasnani Date of hearing 13-01-2023 Date of pronouncement 20-01-2023 ITA No.14/PUN/2022 Sambhaji Rambhau Bhalekar 2 2. It emerges at the outset during the course of hearing that there is hardly any need for us to delve deeper in the relevant factual matrix. This is for precise reason that so far as the assessee‟s sole substantive ground seeking to reverse both the learned lower authorities action imposing section 271(1)(c) penalty of Rs.6,98,680/- is concerned, the Assessing Officer‟s corresponding show cause notice dated 21.03.2014 (page No.1 in paper book) appears to have nowhere specified as to whether the former had concealed the particulars of his taxable income or furnished inaccurate particulars of such income; as the case may be. Learned DR invited our attention to the departmental correspondence that the Assessing Officer had subsequently issued yet another proper show cause notice dated 10.08.2018 as well as on 26.12.2018 before passing his order dated 01.03.2019, the same hardly tends to cure the foregoing clinching defect in light of the hon‟ble jurisdictional high court‟s decision in Mohd. Farhan A. Shaikh vs. ACIT (2021) 434 ITR 1 (Bom)(FB). We delete the ITA No.14/PUN/2022 Sambhaji Rambhau Bhalekar 3 impugned penalty on the instant legal issue therefore. All other pleadings on merits stand rendered academic. 3. This assessee‟s appeal is allowed in above terms. Order pronounced in the Open Court on 20 th January, 2023. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER प ु णे Pune; ददिधांक Dated : 20 th January, 2023 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The concerned CIT(A), Pune 4. 5. The concerned Pr.CIT, Pune विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “B” / DR „B‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA No.14/PUN/2022 Sambhaji Rambhau Bhalekar 4 Date 1. Draft dictated on 16-01-2023 Sr.PS 2. Draft placed before author 17-01-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.