Omsairam Steel And Allpys Pvt.Ltd, Jalna V. Deputy Commissioner of Income-tax,Central Circle-2, Aurangabad

ITA 25/PUN/2019

AI Insights

The case involves Omsairam Steel & Alloys Pvt. Ltd., the appellant, contesting a penalty imposed by the Deputy Commissioner of Income Tax, Central Circle-2, Aurangabad, for the Assessment Year 2007-08. The penalty was initially levied under section 271(1)(c) of the Income Tax Act, 1961, for alleged concealment or inaccurate furnishing of income particulars. The primary legal contention revolved around the procedural validity of the penalty notice issued by the Assessing Officer, which failed to clearly specify the nature of the alleged default. The Tribunal referenced a landmark decision by the Bombay High Court in Mohd. Farhan A. Shaikh Vs. ACIT, which established that such a procedural lapse invalidates the penalty proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 137863 (ITAT-PUNE)
• Duration Of Justice: 15 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2022
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: A
• Next Hearing Date: 05-12-2022
• Assessment Year: misc
• Appeal Filed On: 08-06-2007
• Other Referred Cases: Mohd. Farhan A. Shaikh Vs. ACIT 434 ITR 1 (Bom)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DAYACHAND D SAWAJI
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.25/PUN/2019 Assessment Year 2007-08 Omsairam Steel & Alloys Pvt. Ltd. Plot No.1,2,3,8 & 9 Addl MIDC Phase-II, JALNA - 431 203 PAN AAACO6232H State of Maharashtra. vs The DCIT, Central Circle- 2, Aayakar Bhavan, Chavani Aurangabad. State of Maharashtra PIN 431 002. Appellant/ Assessee Respondent /Revenue Assessee by : Shri Dayachand D Sawaji Revenue by : Shri Ramnath P Murkunde Date of hearing : 06.12.2022 Date of pronouncement : 09.12.2022 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for Assessment Year 2007- 08 is directed against the Commissioner of Income Tax (Appeals)-2, Aurangabad’s order dated 01.11.2018 passed in appeal No. ABD/CIT(A)-2/205/2016-17, in proceedings u/s.271(1)(c) of the Income Tax Act, 1961 [in short “the Act”]. 2. Heard both the parties. Case file perused. 3. Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law and on facts in imposing the section 271(1)(c) penalty of 2 ITA.No.25/PUN/2019 Omsairam Steel & Alloys Pvt. Ltd., Jalna, Maharashtra. Rs.1,26,106/-, it emerges at the outset that the Assessing Officer’s corresponding penalty show cause notice dated 01.02.2016 issued to the taxpayer had nowhere specified or struck-off the relevant limb as to whether he had concealed particulars of his income or furnished inaccurate particulars of such an income, as the case may be. 4. Faced with the situation, we quote hon’ble jurisdictional high court’s recent Full Bench landmark decision in Mohd. Farhan A. Shaikh Vs. ACIT 434 ITR 1 (Bom) has settled the law that the above stated failure on the Assessing Officer’s part indeed vitiates the entire penal proceedings itself. We thus delete the impugned penalty for this precise reason alone. Ordered accordingly. 5. This assessee’s appeal is allowed. Order pronounced in the open Court on 09 th December, 2022. Sd/- Sd/- (DR. DIPAK P. RIPOTE) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 09 th December, 2022 VBP/- 3 ITA.No.25/PUN/2019 Omsairam Steel & Alloys Pvt. Ltd., Jalna, Maharashtra. Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5 . DR, ITAT, “A” Bench, Pune. 6. Guard File. BY ORDER, // TRUE COPY // Senior Private Secretary ITAT, Pune.