AESTHETICA ENTERPRISES PVT. LTD., NEW DELHI V. ACIT, CENTRAL CIRCLE- 6, NEW DELHI

ITA 5133/DEL/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0418 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 07-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JHA
• Keywords: Unexplained cash credit
• Section: 271(1)(c); 13; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.5132/DEL/2017 & 5133/DEL/2017 Assessment Years 2009-10 & 2010-11 Aesthetica Enterprises P. Ltd., C-30, Panchsheel Enclave, New Delhi. vs. ACIT, Central Circle-6, New Delhi. TAN/PAN: AAGCA9296B (Appellant) (Respondent) Appellant by: Shri P.C. Yadav, Adv. Respondent by: Shri Mukesh Jha, Sr.DR Date of hearing: 06 01 2022 Date of pronouncement: 07 01 2022 O R D E R PER PRADIP KUMAR KEDIA - A.M.: The above captioned appeals have been filed by the Assessee against the order of the ld. Commissioner of Income Tax (Appeals)-XXIV, New Delhi [for short “CIT(A)”] dated 29.06.2017 arising from the order passed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (for short “Act”) concerning Assessment Years 2009-10, 2010-11. Since the issues involved in all these cases are similar and interconnected, therefore, these appeals were heard together and are being disposed of by way of this common order. The following grounds raised in both the appeals are as under: ITA No.5132/Del/2017 “1. That the Ld. CIT (Appeal) has erred in upholding the penalty of Rs. 1,67,942/- imposed by the AO., invoking the provisions of sec 271(1)(c) of IT Act 1961. ITAs. No. 5132 & 5133/DEL/2017 2 2. That the Ld. CIT (Appeal) has erred in upholding the penalty of Rs. 1,67,942/-,without considering the facts and circumstances of the case and relying on irrelevant judicial pronouncements. 3. That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of contemporary jurisprudence.” IT A N o. 51 33 /D el /2 01 7 “ 1 . That the Ld. CIT (Appeal) has erred in upholding the penalty of Rs. 3,58,595/- imposed by the AO., invoking the provisions of sec 271(1)(c) of IT Act 1961. 2. That the Ld. CIT (Appeal) has erred in upholding the penalty of Rs. 3,58,595/- , without considering the facts and circumstances of the case and relying on irrelevant judicial pronouncements. 3. That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of contemporary jurisprudence.” 2. W e sha ll f i rs t ta ke u p IT A N o. 51 33/ De l/ 20 17 co nc e rni ng As ses s me nt Ye ar 2 01 0-1 1 f o r the p ur p ose s of a dj udi ca ti o n. 3. As per t he gro un d s of a ppe al in IT A N o. 51 33 /D el/20 17, th e ass es se e s ee ks to cha ll en ge i mpo si ti on of pen al t y of R s.3 ,5 8, 59 5/ - lev ie d un der S ec ti o n 2 71 (1 )( c). 4. W h en th e mat te r was c al led f or he a rin g, t he le arn ed c ou nse l f or th e a sse ss ee at t he o ut se t ref e rr ed t o th e p et iti on f i le d un der Ru le 11 of the I TA T Ru les t o se ek l ea ve of the T ri bu na l to ra is e add it io na l gro un ds wh ich r ea ds as u nd er: “ a ) O n t h e f a c t s a n d u n d e r t h e c i r c u m s t a n c e o f t h e c a s e t h e p e n a l t y l e v i e d u n d e r S e c t i o n 2 7 1 ( 1 ) ( c ) o f t h e A c t is v o i d a s t h e n o t i c e u / s . 2 7 4 r e a d w i t h S e c . 2 7 1 i s b a d a n d d e f e c ti v e a s i t i s ITAs. No. 5132 & 5133/DEL/2017 3 i s s u e d w i t h o u t d e l e t i n g t h e a p p r o p r i a t e c l a u s e u n d er w h i c h t h e p e n a l t y i s p r o p o s e d t o b e i m p o s e d i s e i t h e r f o r f i ll i n g o f i n a c c u r a t e p a r t i c u l a r o f i n c o m e o r c o n c e a l m e n t o f p a r t i c u l a r s o f i n c o m e a n d a s s u c h t h e n o t i c e i s n o t s u s t a i n a b l e a n d n o t c u r a bl e . ” 5. It wa s p oi nt ed o ut th at th e a dd it io na l g ro un d a ri se s f ro m t he f acts a va ila bl e on reco rd a nd a ls o goe s to the r o ot o f the iss ue , the ref o re, s a me ma y b e pe r mitt ed t o b e r ai sed b el ate dl y a t t hi s sta ge in t he li gh t of th e dec is io n of H on ’b l e S upr e me C ourt in the ca se of CI T vs. Va ra s Int e rn ati on al a s re po r ted i n 28 4 IT R 8 0 (S C ) a nd Na tio na l Th er ma l Po we r C o. L td . v s. CI T re po rte d in 2 29 IT R 38 3 (S C ). 6. Ha vin g r eg ar d to the f a ct t ha t t he a ddi ti on al grou nd r ais ed con ce rn in g j uri sd ic tio n t o i mp os e p en alt y a nd a v alidi t y of not ic e iss ue d u nd er Sec ti on 2 74 r. w. Se cti o n 27 1( 1) (c ) of th e Act wh ic h goe s t o t he r oo t o f the matt er , t he a ddi ti on al gro und s o ra is ed i s ad mit te d f o r a dj ud i cat io n. 7. Ld. c ou ns el a dv er t ed to the i mp u gn e d pe nal t y n otic e d ate d 20. 06 .2 01 4 a nd su b mitt ed th at t he n atu re of def au lt c o mmi t ted b y the a ss es se e is n ot kn ow n as t he i nap p rop ri at e po rti on i n t he re le va nt col u mn of t he s ho w ca us e n ot ic e has no t b ee n s tru ck of f . Co ns eq uen tl y, t he Ass es si ng Of f ice r hi mse lf was u n sur e of the cat eg or y un de r w hic h th e def a ul t is bl a med on t he asse ss ee . Co ns eq uen tl y, th e pe nal t y or de r p a sse d i n c o nse qu ence of s uc h def ec ti ve no tic e s u f f ers f ro m no n a pp lic at io n of min d a nd lac k of sat isf a cti on t ow ard s n at ure of d ef aul t. It wa s f urthe r p oi nt ed ou t t ha t the a ss es see b el on gs to R oc kla n d G r ou p of co mp an ies wh ere t he sea rc h w as c on du c ted on 06 .0 9. 20 11, and in t he id enti cal se t of f acts , t he pe nal t y i mp os ed u/ s.2 71 (1 )( c) w as de le ted i n o the r g ro up cas es o wn in g to si mil ar d ef ec tiv e n ot ice . A ref e re nce w as made to ITAs. No. 5132 & 5133/DEL/2017 4 the de ci si on of C o -or di na te Ben ch of Tri bu na l i n Ra dh i ka S ur gi ca l Pvt . L td . v s. AC IT in I T As No .5 09 0, 50 91 an d 5 09 2/ Del/ 20 17 an d M/ s. Ak hil M ed ite ch Pv t. Lt d. in IT As No .5 11 8, 51 19, 51 20 an d 51 21/ De l/ 20 17 w he re i n t he id en ti cal f act s it ua tio n t he p ena lt y h as bee n qu as he d. A f urt he r ref er en ce w as ma de t o th e de c isi on of th e Ho n’ ble H ig h Co u rt in c as e of (i ) PC IT v s. Sa ha ra Ind ia L if e Ins ur an ce Co . Lt d. as r ep or te d in 4 32 IT R 84 (De l. ); (ii ) CI T & A nr . v. M an ju na th a C ot ton an d G in ni ng F act or y, 35 9 I TR 565 (Ka rn ); (ii i ) M oh d. Fa rh an A. S ha ik h v s. D y. CI T [ 202 1] 434 I TR 1 [ Bom (FB )] , f or th e p ro p osi ti on th at no ti ce iss ue d u nd er Se ct io n 2 74 r. w. Sec ti on 2 71( 1) (c ) of the A ct is ba d i n l aw wh er e i t d id no t s pe cif y un der w hic h li m b of S ec ti on 27 1(1 )( c) of th e A ct, pe na lt y pro ce ed in gs ha d b een i ni tia te d, i. e. , wh et he r f or con c eal me nt of par ti cu lar s of inc o me o r f ur ni shi ng of in acc ur at e pa rti cu lar s of inc o me. It w as th us ur ge d t ha t t he wh ole p ro cee di ngs se ek in g t o i mpo se pe na lt y is none st a nd b ad in la w at t he t hr esh ol d an d con se qu en tl y t he p ena lt y o r der i n pu r sua nc e of t he def e cti ve n ot ice req ui re s t o be s tr uc k d o wn. 8. Ld. D R f o r th e Re ven ue , on t he ot he r h an d, re li ed u po n t he f irst a pp el lat e or de r. It w as f ur th er s u b mitt ed t hat th e pe nal t y n ot ic e ref err ed to a nd r el i ed u po n on be ha lf of the a ss es see ca n not be s ee n on a st an da lo ne b as is an d re qu ir es to b e rea d in c on ju nct i on w ith t he ass es s men t or der w her e th e s pe cif i c s a tisf a cti o n h as b ee n dra wn a nd spe lt an d t he as se s see ha s n ot ob je ct e d t o an y a ll eg ed va gue ne ss in the no tic e at t he t i me of par tic ip at io n in t he p en al t y p roc ee di ng s bef or e t he A ss es si ng Of f icer . It wa s f urt her s ub mi tt ed tha t ha vi ng reg ar d to t he na tu r e of ad di ti on, v iz ., ad di ti on t ow ar ds un dis cl os ed inc o me of f ere d be f ore Se tt le me nt C o mmi ss io n etc ., th e nat ur e of def au lt pe r s e i s no t re le va nt to def en d t he ci rc u msta nc es f o r con ce al me nt of inc o me. Ld . D R f urth er su b mit te d th at t he ra ti o of ITAs. No. 5132 & 5133/DEL/2017 5 var io us de cis io ns r ef err ed t o a nd rel ie d up on ar e not r el e van t i n t he pec ul ia r f act s of t he cas e. H e t hu s s ub mit te d t ha t no i nte rf ere nc e wit h th e or der of th e C IT (A ) is ca ll ed f or in e ith er of the a ppe al s. 9. W e ha ve c ar ef ul l y c on sid er ed th e riv al su b mis si on s. As poi nt ed o ut on b eh alf of the as se ss ee , a pos it io n ha s be e n ta ken b y the C o-o rd in at e B e nch of th e T ri bu na l in ot he r g ro up ca ses in th e ide nt ic al f a ct s itu at ion . Th e Co -o rd ina te Be nc h ha s a pp li ed th e la w as e xp ou nd ed b y t he Ho n’ ble J uri sd i cti on al Hi gh C our t an d o th er Ho n’ ble C ou rt s of dif f ere nt ju ri sd ic t ion . It ma y b e pe rti ne nt to ext ra ct t he rel ev an t ope ra ti ve p ar ag rap h of th e de ci si on r end er ed b y the C o- ord in at e B e nch i n t he cas e of Ra dhi ka S ur gic al P vt. Lt d. vs . AC IT in I T As No . 5 09 0, 5 09 1 & 5 09 2/ Del /2 01 7, st at ed t o be a gr ou p cas e, f or th e pu rp os es of e as y r ef ere nc e. 8 . We h a v e h e a r d t h e r i v a l s u b m i s s i o n s a n d p e r u s e d t h e m a t e r i a l o n r e c o r d . T h e i s s u e i n t h e p r e s e n t g r o u n d i s w i t h r e sp e c t t o l e v y o f p e n a l t y u n d e r s e c t i o n 2 7 1 ( l ) ( c ) o f t h e A c t . We f i n d t h a t t h e i d e n t i c a l i s s u e a r o s e i n t h e c a s e o f t h e a s s e s s e e i n A . Y . 2 0 08 - 0 9 a n d t h e C o - o r d i n a t e B e n c h o f T r i b u n a l i n I T A N o . 5088/Del/2017 for A.Y. 2008-09 vide order dated 21.01.2021 has deleted the penalty by observing as under: “3. Search and seizure action u/s 132(4) of the Income Tax Act, 1961 (hereafter referred to as the “the Act”) was carried out in the Rockland group of cases on 06.09.2011. Subsequent to the search and seizure action, assessment proceedings were carried out u/s 153C r.w.s. 143(3), by issue of notice dated 05.08.2013 to the appellant to file the return of income. In response, the assessee filed return of income on 10.09.2013, disclosing the total income as NIL. Subsequently, the assessee filed an application for settlement u/s 245C of the Act before the Income Tax Settlement Commission in the capacity of a “related” person, related to the other assessee’s of the Rockland group who had also filed settlement applications as “specified person" u/s 245C(i) proviso (i). However, the assessee's application was rejected by the Income Tax Settlement Commission vide their order dated 23.04.2013, wherein the Commission held that the assessee does not qualify for admission as a person ITAs. No. 5132 & 5133/DEL/2017 6 “related to” to the “specified person”. The assessee filed a writ petition before the Hon’ble Delhi High Court, challenging the rejection order of the Settlement Commission, but the petition was dismissed by the Hon’ble Delhi High Court ' on 20.10.2015. Meanwhile, the Assessing Officer passed the assessment order making the following additions over and above the income returned by the assessee: The assessee filed appeal against all the above heads of additions. In the appeal against the quantum additions, the following amounts were confirmed in first appeal. A f t e r g i v i n g e f f e c t t o t h e o r d e r o f C I T ( A ), t h e A s se s s i n g O f f i c e r a f t e r p r o v i d i n g t h e a s s e s s e e a n o p p o r t u n i t y t o s h o w c a u s e a s t o w h y p e n a l t y u / s 2 7 1 ( 1 ) ( c ) s h o u l d n o t b e l e v i e d f o r c o n ce a l m e n t o f i n c o m e , a n d c o n s i d e r i n g t h e s a m e , r e j e c t e d t h e s u b mi s s i o n s o f t h e a s s e s s e e a n d p r o c e e d e d t o l e v y p e n a l t y a t t h e r a t e o f 1 0 0 % o f t h e t a x s o u g h t t o b e e v a d e d o n t h e a m o u n t s c o n f i r m e d i n f i r s t a p p e a l . 7 . We h a v e h e a r d b o t h t h e p a r t i e s a n d p e r u s e d a l l th e r e l e v a n t m a t e r i a l s a v a i l a b l e o n r e c o r d . F i r s t o f a l l , i n t h e n o t i c e i s s u e d u / s 2 7 4 r . w . s 2 7 1 ( 1 ) ( c ) o f t h e I n c o m e . T a x i A c t , 1 9 6 1 , t h e r e w a s n o s p e c i f i c c h a r g e s a s r e l a t e s t o c o n c e a l m e n t o f i n c o me o r f u r n i s h i n g o f i n a c c u r a t e p a r t i c u l a r s o f i n c o m e . F r o m t h e n o t i ce d a t e d 2 0 / 0 6 / 2 0 1 4 p r o d u c e d b y t h e L d . A R d u r i n g t h e h e a r i n g , i t c a n b e s e e n A.Y Head of addition Amount (IN Rs.) 2008-09 (i) Disclosure in settlement application 30,00,000 (ii) Unexplained cash credits 1,79,56,880/- (Hi) Commission paid to secure unexplained cash credits 5,38,706/- A.Y. Head of addition Amount (IN Rs.) 2008-09 (i) Disclosure in application settlement 30,00,000 (ii) Unexplained cash credits 2,26,000/- (iii) Commission paid to secure unexplained cash credits 1,79,569/- ITAs. No. 5132 & 5133/DEL/2017 7 t h a t t h e A s s e s s i n g O f f i c e r w a s n o t s u r e u n d e r w h i c h l i m b o f p r o v i s i o n s o f S e c t i o n 2 7 1 o f t h e I n c o m e T a x A c t , 1 96 1 , t h e a s s e s s e e i s l i a b l e f o r p e n a l t y . B e s i d e s t h a t t h e A s s e s s m e n t O r d e r a l s o d i d n o t s p e c i f y t h e c h a r g e a s t o w h e t h e r t h e r e i s c o n c e a l m en t o f i n c o m e o r f u r n i s h i n g o f i n a c c u r a t e p a r t i c u l a r s o f i n c o m e i n as s e s s e e ’ s c a s e . B e s i d e s t h i s , t h e p r e s e n t c a s e i s r e l a t i n g t o s e a r ch c o n d u c t e d b y t h e R e v e n u e i n t h e p r e m i s e s o f t h e a s s e s s e e , w h i l e t h e d e c i s i o n r e l i e d b y t h e A s s e s s i n g O f f i c e r a s w e l l a s C 1 T ( A ) t h a t o f H o n ’ b l e S u p r e m e C o u r t i n c a s e o f M a k D a t a P . L t d . v s . C I T 3 5 8 I T R 59 3 i s r e l a t i n g t o s u r v e y a n d t h e r e i s n o i s s u e i n v o l v e d a b o u t t h e n o ti c e i s s u e d u / s 2 7 1 ( l ) ( c ) r . w . s . 2 7 4 o f t h e A c t . T h i s c a s e r e l i e d by t h e R e v e n u e i s n o t a p p l i c a b l e i n t h e p r e s e n t c a s e d u e t o t h e d i s t in g u i s h i n g f a c t s . T h e r e i s s e p a r a t e p r o v i s i o n f o r p e n a l t y i n s e a r c h ca s e s g i v e n u n d e r t h e s t a t u t e a f t e r 0 1 . 0 7 . 2 0 1 2 t h a t o f S e c t i o n 2 7 1 A A B o f t h e A c t w h i c h w a s t o t a l l y i g n o r e d b y t h e A s s e s s i n g O f f i c e r . T h u s , t h e p e n a l t y i t s e l f i s b a s e d o n i n c o r r e c t S e c t i o n . T h e r e f o r e w e a r e t a ki n g u p t h e c o n t e n t i o n o f t h e a s s e s s e e t h a t t h e r e i s n o p a r t i c ul a r l i m b m e n t i o n e d i n t h e n o t i c e i s s u e d u n d e r S e c t i o n 2 7 1 ( l )( c ) r . w . p . 2 7 4 o f t h e A c t . T h i s i s s u e i s s q u a r e l y c o v e r e d b y t h e d e c is i o n o f t h e H o n ’ b l e S u p r e m e C o u r t i n c a s e o f M / s S S A ’ E m e r a l d Me a d o w . T h e e x t r a c t o f t h e d e c i s i o n o f t h e H o n ’ b l e K a r n a t a k a H ig h C o u r t i n M / s S S A ’ E m e r a l d M e a d o w s a r e a s u n d e r w h i c h w a s c o n f i r me d b y t h e H o n ’ b l e A p e x C o u r t : " 3 . T h e T r i b u n a l h a s a l l o w e d t h e a p p e a l f i l e d b y t he a s s e s s e e h o l d i n g t h e n o t i c e i s s u e d b y t h e A s s e s s i n g O f f i c e r u n d e r S e c t i o n 2 7 4 r e a d w i t h S e c t i o n 2 7 1 ( 1 ) ( c ) o f t h e I n c o m e T a x A c t , 1 9 6 1 f o r s h o r t ' t h e A c t ' ) t o b e b a d i n l a w a s i t d i d n o t s p e c i f y w h i c h l i m b o f S e c t i o n 2 7 1 ( i ) ( c ) o f t h e A c t , t h e p e n a l t y p r o c e e d i n g s h a d be e n i n i t i a t e d i . e . , w h e t h e r f o r c o n c e a l m e n t o f p a r t i c u l a r s o f i n c o m e o r f u r n i s h i n g o f i n a c c u r a t e p a r t i c u l a r s o f i n c o m e . T h e T r i b u n a l , w h il e a l l o w i n g t h e a p p e a l o f t h e a s s e s s e e , h a s r e l i e d o n t h e I T A N o . 49 1 3 / D e l / 2 0 1 5 d e c i s i o n o f t h e D i v i s i o n B e n c h o f t h i s C o u r t r e n d e re d i n t h e c a s e o f ITAs. No. 5132 & 5133/DEL/2017 8 C O M M I S S I O N E R O F I N C O M E T A X - V S - M A N J U N A T H A C O T T O N A N D G I N N I N G F A C T O R Y (2 0 1 3 ) 3 5 9 I T R 5 6 5 . 4 . I n o u r v i e w , s i n c e t h e m a t t e r i s c o v e r e d b y j u d gm e n t o f t h e D i v i s i o n B e n c h o f t h i s C o u r t ) w e a r e o f t h e o p i n i o n, n o s u b s t a n t i a l q u e s t i o n o f l a w a r i s e s i n t h i s a p p e a l f o r d e t e r m i n at i o n b y t h i s C o u r t . T h e a p p e a l i s a c c o r d i n g l y d i s m i s s e d . " T h u s , A d d i t i o n a l G r o u n d N o . ( i i ) o f t h e a s s e s s e e ' s a p p e a l i s a l l o w e d . S i n c e t h e i n c e p t i o n o f t h e n o t i c e i s s u e d u/ s 2 7 1 (l ) ( c ) h a s b e c o m e n u l l a n d v o i d , t h e r e i s n o n e e d t o c o m m e n t on m e r i t o f t h e c a s e . T h e P e n a l t y u / s 2 7 1 ( 1 ) ( c ) o f t h e A c t i s q u a s he d . ” S i n c e i n t h e i n s t a n t c a s e a l s o t h e i n a p p r o p r i a t e w or d s i n t h e p e n a l t y n o t i c e h a s n o t b e e n s t r u c k o f f a n d t h e n o t i c e d o e s n o t s p e c i f y a s t o u n d e r w h i c h l i m b o f t h e p r o v i s i o n s , t h e p e n a l t y u / s 2 7 1 ( 1 ) ( c ) h a s b e e n i n i t i a t e d , t h e r e f o r e , w e a r e o f t h e c o n s i d e r e d o p i n i o n t h a t t h e p e n a l t y l e v i e d u / s 2 7 1 (l ) ( c ) i s n o t s u s t a i n a b l e a n d h a s t o b e d e l e t e d . A l t h o u g h t h e L d . D R s u b m i t t e d t h a t m e r e n o n - s t r i k i ng o f f o f t h e i n a p p r o p r i a t e w o r d s w i l l n o t i n v a l i d a t e t h e p e n a l t y p r o c e e d i n g s , h o w e v e r , t h e d e c i s i o n o f t h e H o n ’ b l e K a r n a t a k a H i g h C o u r t i n t h e c a s e o f S S A ’ S E m e r a l d M e a d o w s ( s u p r a ) w h e r e t h e S L P f i l e d b y t h e R e v e n u e h a s b e e n d i s m i s s e d i s d i r e c t l y o n t h e i s s u e c o n t e s t e d h e r e i n b y t h e A s s e s s e e . F u r t h e r , w h e n t h e n o t i c e i s n o t m en t i o n i n g t h e c o n c e a l m e n t o r t h e f u r n i s h i n g o f i n a c c u r a t e p a r t i c ul a r s , t h e r a t i o l a i d d o w n b y t h e H o n ’ b l e H i g h C o u r t i n c a s e o f M / s . S a h a r a I n d i a L i f e I n s u r a n c e C o m p a n y L t d . ( s u p r a ) w i l l b e a p p l i c ab l e i n t h e p r e s e n t c a s e . T h e H o n ’ b l e D e l h i H i g h C o u r t h e l d a s u n d e r : “ 2 1 . T h e R e s p o n d e n t h a d c h a l l e n g e d t h e u p h o l d i n g o f t h e p e n a l t y i m p o s e d u n d e r S e c t i o n 2 7 1 ( 1 ) ( c ) o f t h e A c t , w h i c h wa s • a c c e p t e d b y t h e I T A T . I t f o l l o w e d t h e d e c i s i o n o f t h e K a r n a ta k a H i g h C o u r t i n C I T v . M a n j u n a t h a C o t t o n & G i n n i n g F a c t o r y 3 5 9 IT R 5 6 5 (K a r ) a n d o b s e r v e d t h a t t h e n o t i c e i s s u e d b y t h e A O w o u l d b e b a d i n l a w ITAs. No. 5132 & 5133/DEL/2017 9 i f i t d i d n o t s p e c i f y w h i c h l i m b o f S e c t i o n 2 7 1 ( l ) (c ) t h e p e n a l t y p r o c e e d i n g s h a d b e e n i n i t i a t e d u n d e r i . e . w h e t h e r f o r c o n c e a l m e n t o f p a r t i c u l a r s o f i n c o m e o r f o r f u r n i s h i n g o f i n a c cu r a t e p a r t i c u l a r s o f i n c o m e . T h e K a r n a t a k a H i g h C o u r t h a d f o l l o w e d t he a b o v e j u d g m e n t i n t h e s u b s e q u e n t o r d e r i n C o m m i s s i o n e r o f I n c o m e T a x v . S S A ’ s E m e r a l d M e a d o w s ( 2 0 1 6 ) 7 3 T a x m a n . c o m 2 4 1 ( K a r ), t h e a p p e a l a g a i n s t w h i c h w a s d i s m i s s e d b y t h e S u p r e m e Co u r t o f I n d i a i n S L P N o : 1 1 4 8 5 o f 2 0 1 6 b y o r d e r d a t e d 5 t h A u g u s t , 2 0 1 6 . 2 2 . O n t h i s i s s u e a g a i n t h i s C o u r t i s u n a b l e t o f i nd a n y e r r o r h a v i n g b e e n c o m m i t t e d b y t h e I T A T . N o s u b s t a n t i a l q u e s t i o n o f l a w a r i s e s . T h u s , n o t i c e u n d e r S e c t i o n 2 7 1 ( 1 ) ( c ) r . w . s . 2 7 4 o f t h e A c t i t s e l f i s b a d i n l a w . We , t h e r e f o r e , s e t - a s i d e t h e o r d e r o f th e C I T ( A ) a n d d i r e c t t h e A s s e s s i n g O f f i c e r t o c a n c e l t h e p e n a l t y s o l e v i e d . 9 . B e f o r e u s , n o d i s t i n g u i s h i n g f e a t u r e i n t h e f a c ts o f t h e c a s e i n t h e - y e a r u n d e r c o n s i d e r a t i o n a n d t h a t o f e a r l i e r y ea r h a s b e e n p o i n t e d o u t b y t h e R e v e n u e . F u r t h e r i t h a s a l s o n o t b r o u g h t o n r e c o r d a n y m a t e r i a l t o s h o w t h a t t h e d e c i s i o n o f t he C o - o r d i n a t e b e n c h o f t h e T r i b u n a l i n a s s e s s e e ’ s o w n c a s e f o r A .Y . 2 0 0 8 - 0 9 h a s b e e n s e t a s i d e / s t a y e d o r o v e r r u l e d b y t h e h i g h e r j u d i c i a l f o r u m . C o n s i d e r i n g t h e t o t a l i t y o f t h e a f o r e s a i d f a c t s a n d f o l l o w i n g t h e d e c i s i o n o f t h e C o - o r d i n a t e b e n c h i n t h e a s s e s s e e ’ s o w n c a s e f o r 2 0 0 8 - 0 9 a n d f o r s i m i l a r r e a s o n s , w e a r e o f t h e v i e w t h a t t h e l e v y o f p e n a l t y u / s 2 7 1 ( 1 ) ( c ) w a s n o t j u s t i f i e d . We t h e r e f or e d i r e c t i t s d e l e t i o n . T h u s t h e g r o u n d s o f t h e a s s e s s e e a r e a l l o w e d. ” 10. In p ari t y wit h a v i ew t ake n b y th e C o-o rd in at e Be nc h, we a re inc li ne d to ac ce pt t he p le a of th e as se sse e t hat the n oti ce iss ue d f or the pu rp os es of i mp osi ti on of pe na lt y, wh ich suf f ers f ro m the vi ce of vag ue ne ss , d oe s n ot pro vi de so un d leg al ba si s f or impo sit io n of pen al t y. Co ns eq ue ntl y, w e se t as id e the or de r of the CI T( A) an d qua sh t he i mp ug ne d pe na lt y o rd er . ITAs. No. 5132 & 5133/DEL/2017 10 11. In th e res ul t, t he ap pea l of th e as se ss ee is a ll ow ed. 12. The f act s an d is su e in I TA N o. 51 33/ D el/ 20 17 a re id en tic al an d con se qu en tl y, the bas is f o r d el eti on of pe na lt y in I T A No. 5 13 3/ Del /2 01 7 app li es mu t ati s m ut an di s in I TA No. 5 13 2/ Del /2 01 7 con ce rn in g As se ss me nt Ye ar 2 00 9- 10 as we ll . 13. Co ns eq uen tl y, t he pena lt y or de r da ted 2 0. 06 .2 014 in ITA No. 5 13 2/ Del /2 01 7 i s a ls o qu as he d. 14. In th e res ul t, b ot h t he ap pe al s of th e as ses se e are a ll ow ed . Order pronounced in the open Court on 07 January, 2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 7 th January, 2022 Prabhat