Deepa Krishen, New Delhi V. ACIT, Circle- 33(1), New Delhi

ITA 2425/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6243 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 09-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income
• Section: 271(1)(c); 274

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI , , . . , , BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT & SH. N.K. BILLAIYA, ACCOUNTANT MEMBER . .. . / ITA NO.2425/DEL/2018 / ASSESSMENT YEAR: 2014-15 SMT. DEEPA KRISHEN, E-69, VASANTMARG, VASANT VIHAR, NEW DELHI-110057 PAN-AEEPK7915G .......... /APPELLANT VS ACIT, CIRCLE-33(1), NEW DELHI . / RESPONDENT / APPELLANT BY : NONE / RESPONDENT BY : SH. PRADEEP SINGH GAUTAM, SR. D R / DATE OF HEARING: 13.01.2020 / DATE OF PRONOUNCEMENT: 27.01.2020 / ORDER PER SUSHMA CHOWLA, VP THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF CIT(A)-11, NEW DELHI, DATED 01/02/2018, RELATING TO ASSESSMENT YEAR 2014-15 AGAINST PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE INCOM E TAX ACT, 1961 (IN SHORT ACT). 2 ITA NO.2425/DEL/2018 ASSESSMENT YEAR: 2014-15 2. DESPITE SERVICE OF NOTICE, NONE WAS PRESENT ON B EHALF OF THE ASSESSEE. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST THE LEVY OF PENALTY OF RS.14,08,870/- U/S 271(1)(C) OF THE ACT. 4. BRIEFLY IN THE FACTS OF THE CASE THE ASSESSEE HA S DERIVED INCOME FROM SALARY, HOUSE PROPERTY, BUSINESS OR PROFESSION, CAP ITAL GAIN AND OTHER SOURCES AND E-FILED RETURN OF INCOME DECLARING INCO ME OF RS.11,29,48,720/- ON 31.07.2014. THE ASSESSING OFFICER HAS INITIATED PENALTY PROCEEDINGS FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME. HOW EVER, IN THE PENALTY ORDER, THE ASSESSING OFFICER LEVIED THE PENALTY FOR CONCEALMENT OF INCOME. 5. PENALTY FOR CONCEALMENT U/S 271(1)(C) OF THE ACT IS LEVIABLE WHERE THE ASSESSEE HAD NEITHER CONCEALED ITS INCOME OR FURNIS HED INACCURATE PARTICULARS OF INCOME. THE ASSESSING OFFICER WHILE COMPLETING THE ASSESSMENT HAS TO RECORD SATISFACTION IN THIS REGAR D, IN ORDER TO SHOW CAUSE THE ASSESSEE AS TO WHICH LIMB OF SECTION 271(1)(C) OF THE ACT HAS NOT BEEN SATISFIED BY IT. THIS IS THE BASIC CONDITION OF THE AFORESAID SECTION. ON PERUSAL OF THE ASSESSMENT ORDER PASSED FOR THE INST ANT ASSESSMENT YEAR REFLECTS SATISFACTION WAS RECORDED FOR FURNISHING O F INACCURATE PARTICULARS OF INCOME AND LEVIED FOR CONCEALMENT OF INCOME. IN SUC H FACTS & CIRCUMSTANCES, THE REQUIREMENTS OF THE SECTION HAVE NOT BEEN MET. MERELY, AN ORDER ISSUING NOTICE U/S 274 R.W.S. 271(1)(C) OF THE ACT DO NOT MEET THE CONDITIONS OF THE SAID INITIATION OF PENALTY PROCEE DINGS. IN THE ABSENCE OF THE SAME, THERE IS NO MERIT IN THE PENALTY ORDER PA SSED IN THE CASE IN THIS 3 ITA NO.2425/DEL/2018 ASSESSMENT YEAR: 2014-15 REGARD. WE FIND SUPPORT FROM THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS SHRI SAMSON PERINCHERY (2017) 392 ITR 4 (BOM.). WE HOLD THAT IN THE ABSENCE OF RECORDING PROPER SATISF ACTION, WHILE INITIATING THE PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT, O RDER PASSED U/S 271(1)(C) OF THE ACT SUFFERS FROM INFIRMITY. HENCE, THE SAME IS CANCELLED. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT 27 TH DAY OF JANUARY, 2020. SD/- SD/- (N. K. BILLAIYA) (SUSHMA CHOWLA) /ACCOUNTANT MEMBER /VICE PRESIDENT / DATED : 27 TH JANUARY, 2020 . *AMIT KUMAR* / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT 2. / THE RE SPONDENT 3. ( ) / THE CIT(A) 4. / THE PR. CIT 5. 6. , , / DR, ITAT, DELHI ! / GUARD FILE. / BY ORDER , '( , , ASSISTANT REGISTRAR, ITAT, DELHI