SHRIPRAKASH PRALHADRAI AGRAWAL, NAGPUR V. INCOME TAX OFFICER, WARD-3(2), NAGPUR

ITA 40/NAG/2020

AI Insights

The case revolves around an appeal by Shriprakash Pralhadrai Agrawal against the penalty imposed by the Income Tax Officer, Ward-3(2), Nagpur, which was upheld by the CIT(A)-2, Nagpur. The penalty of Rs.4,25,010 was levied under Section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2009-10. The primary contention in the appeal was the procedural defect in the show cause notice issued by the Assessing Officer, which failed to specify the nature of the penalty - whether it was for concealment of income or for furnishing inaccurate particulars. The Tribunal, referencing the Full Bench decision in Mohd. Farhan A. Shaikh vs. ACIT, held that such a defect vitiates the entire penalty proceedings, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131926 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 12-02-2020
• 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); 274

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.40/Nag./2020 Assessment Year 2009-2010 Shriprakash Pralhadrai Agrawal Resham Oli, Jagnath Budhwari, Nagpur-440002 vs. Income Tax Officer Ward-3(2), Nagpur PAN: ABDPA5823B (Appellant) (Respondent) For Assessee : Shri Abhay Agrawal, Adv. For Revenue : Shri Sanjay Agrawal, DR Date of Hearing : 01.09.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal for A.Y. 2009-10, arises against the CIT(A)-2, Nagpur’s order dated 18.11.2019, passed in Case No.CIT(A)-2/163/2016-17, in proceedings under section 271(1)(c) of the Income Tax Act, 1961 [“In short Act”]. 2. Heard both the parties. Case file perused. 3. Coming to the assessee’s sole substantive grievance challenging correctness of both the lower authorities’ action imposing Section 271(1)(c) penalty of Rs.4,25,010/- in the Assessing Officer’s corresponding order dated 31.03.2009 as upheld in the CIT(A)’s lower appellate discussion, we note at the outset that the former’s show cause notice issued under Section 274 of the Act 2 ITA.No.40/Nag./2020 (Shriprakash P. Agrawal vs. ITO dated 02.02.2016 had nowhere specified as to whether this is an instance of concealment or furnishing of inaccurate particulars of income. That being the case, we quote Mohd. Farhan A. Shaikh vs. ACIT [2021] 434 ITR 1 (Bom.) (FB) that such a failure at the Assessing Officer’s behest vitiates the entire proceedings. 4. We accordingly reject the Revenue’s vehement arguments supporting the impugned penalty in very terms. The assessee succeeds in its sole substantive grievance therefore. Ordered accordingly. 5. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 22.09.2023 Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 22.09.2023 S.K.SINHA True Copy Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Nagpur Bench, Nagpur 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.