Rupinder Kaur, New Delhi V. DCIT Central Circle-30, New Delhi

ITA 2002/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8685 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-02-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 10-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c); 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’ : NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA No.2002/DEL/2023 (Assessment Year: 2012-13) Rupinder Kaur, vs. DCIT, Central Circle 30, R-675, 1 st Floor, New Delhi. New Rajinder Nagar, Central Delhi, New Delhi – 110 060. (PAN : AASPK0367J) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Lalit Mohan, CA Shri Parth Singhal, Advocate REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 14.02.2024 Date of Order : 19.02.2024 ORDER This appeal by the assessee is directed against the order of the ld. CIT (Appeals)-30, New Delhi dated 18.01.2023 for the assessment year 2012-13 confirming the penalty under section 271(1)(c) of the Income-tax Act, 1961 (for short ‘the Act’) amounting to Rs.15,22,861/-.. 2. At the outset, it is noted that there is a delay of 114 days in filing the appeal before the ITAT. For the reasonable cause for filing the delayed appeal, ld. Counsel for the assessee submitted that ld. CIT (A) has passed the penalty order with the direction that the decision on penalty u/s 271(1)(c) is 2 ITA No.210/DEL/2023 however subject to outcome/decision of the application filed by the assessee’s husband before the Income Tax Settlement Commission (ITSC) owning the amount of Rs.51,00,000/- taken in the name of assessee as accommodation entry. It has been submitted by the ld. Counsel for the assessee that ITSC passed the order in the case of assessee’s husband on 23.06.2023 and subsequent to the aforesaid order, the instant appeal was filed on 11.07.2023 which is within the statutory time period provided under the Act. 3. Upon hearing both the parties and perusing the records, the delay in filing the appeal before the Tribunal is condoned. 4. Although assessee has raised various grounds, at the outset, ld. Counsel of the assessee contended that the notice issued under section 274 read with section 271(1)(c) of the Act is a defective one. The charge has not been specified in the notice, hence referring to various decisions including that of Hon’ble jurisdictional High Court in the case of PCIT vs. Sahara India Life Insurance Co. Ltd. 432 ITR 84 (Del.), ld. Counsel for the assessee pleaded that the penalty order is liable to be quashed. 5. Upon hearing both the parties and perusing the records, we note that the penalty notice contains the following charge :- 3 ITA No.210/DEL/2023 6. We note that in the above notice, the charge has not been specified and it is an omnibus notice. In such circumstances, Hon’ble jurisdictional High Court in the case of Sahara India Life Insurance Co. Ltd. (supra) has held that the penalty order passed is liable to be quashed on account of this defect which is fatal. We further note that Full Bench of Hon’ble Bombay 4 ITA No.210/DEL/2023 High Court in the case of Mr. Mohd. Farhan A. Shaikh vs. ACIT in ITA No.51 & 57 of 2012 dated11.03.2021 has held that no specification of charge in the penalty notice leads to same becoming void and penalty on that count is to be deleted. Hon’ble Court held as under :- “Head Note only : S.271(1)(c) : Penalty – Concealment –Non-striking off of the irrelevant part while issuing notice under section 271(1)(c) of the Income-tax Act, - Order is bad in law – Assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness.” 7. Respectfully following the precedent as above, we set aside the orders of authorities below and decide the issue in favour of the assessee. Accordingly, we direct to delete the penalty. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on this 19 th day of February, 2024. Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER Dated the 19 th day of February, 2024 TS 5 ITA No.210/DEL/2023 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A)-30, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.