Ayursidhha Inc, Gurgaon V. ITO, Ward- 1(2), Gurgaon

ITA 6105/DEL/2018

• Counselvise Citation: [2021] 129 COUNSELVISE.COM (IT) 9834 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 25-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY TRIPATHI
• Section: 271(1)(c); 274; 73

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 6105/DEL/2018 : ASSTT. YEAR : 2010-11 AYURSIDHHA INC., V-17/18, DLF PHASE-III, GURGAON, HARYANA VS INCOME TAX OFFICER, WARD-1(2), GURGOAN (APPELLANT) (RESPONDENT) PAN NO. A AMFA9665K ASSESSEE BY : SH. TARUN TULSANI, CA REVENUE BY : SH. SANJAY TRIPATHI, SR. DR DATE OF HEAR ING: 2 1 . 10 .20 2 1 DATE OF PRONOUNCEMENT: 21 .10 .20 2 1 ORDER PER AMIT SHUKLA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-2, GURGAON DATED 24.11. 2017. 3. THE ASSESSING OFFICER MADE ADDITION OF RS.6,83,0 00/- TO THE TOTAL INCOME ON ACCOUNT OF THE UNSECURED LOANS RECEIVED DURING THE F.Y. 2009-10. CONSEQUENT TO THE ADDITION , PENALTY U/S 271(1)(C) HAS BEEN LEVIED BY THE AO. 4. WE FIND THAT THE PAGE NO. 7 BELOW PARA 8.1, THE ASSESSING OFFICER HAS ALSO MENTIONED T PENALTY PROCEEDINGS U/S 271(1)(C) ARE INITIATED SIMULTANEOUSLY FOR CONCEALING TRUE PA RTICULARS OF INCOME AND FURNISHING INACCURATE PARTICULARS OF SUCH INCOM E . ITA NO. 6105/DEL/2018 AYURSIDHHA INC. 2 5. WE ALSO FIND THAT THE PARA NO. 7 OF THE PENALTY ORDER READS AS UNDER: 6. IT IS HELD THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF HIS INCOME/FURNISHED INACCURATE PARTICULARS OF HIS INCO ME. 6. WE HAVE ALSO GONE THROUGH THE NOTICE U/S 274 R.W .S. 271 OF THE INCOME TAX ACT, 1961 ISSUED BY THE ASSESSING OFFICER ON 31.03.2013. WE FIND THAT THE ASSESSING OFFICER HAS ISSUED THE PENALTY ORDER STATING THAT, YOU *HAVE CONCEALED THE PARTICULARS OF YOUR INCOME BY FURNISHING INACCURATE PARTICULARS OF SUCH INCOME. 7. ON THIS ISSUE, WE ARE GUIDED BY THE FOLLOWING JU DGMENTS: 1) KARNATAKA HIGH COURT: CIT VS. MANJUNATHA COTTON AND GINNING FACTORY: 359 ITR 565 HELD THAT NOTICE UNDER SECTION 274 SHOULD SPECIFICALLY STATE THE GROUNDS MENTIONED IN SECTION 271(1)(C) OF THE ACT, I.E., WH ETHER IT IS FOR CONCEALMENT OF INCOME OR FOR FURNISHING OF I NCORRECT PARTICULARS OF INCOME. SENDING PRINTED FORM WHERE A LL THE GROUNDS MENTIONED IN SECTION 271 ARE MENTIONED WOUL D NOT SATISFY REQUIREMENT OF LAW. 2) BOMBAY HIGH COURT: MR. MOHD. FARHAN A. SHAIKH VS AC IT SECTION 271(1)(C): PENALTY-CONCEALMENT-NON-STRIKING OFF OF THE IRRELEVANT PART WHILE ISSUING NOTICE U/S 271(1) (C) OF THE INCOME TAX ACT, ORDER IS BAD IN LAW. ASSESSEE MUST BE INFORMED OF THE GROUND OF THE PENALTY PROCEEDINGS O NLY THROUGH STATUTORY NOTICE. AN OMNIBUS NOTICE SUFFERS FROM THE VICE OF VAGUENESS. 3) THE HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF PCIT VS. SAHARA INDIA LIFE INSURANCE CO. LTD. IN IT A NO. 475 OF 2019, REITERATED THAT NOTICE UNDER SECTION 2 74 ITA NO. 6105/DEL/2018 AYURSIDHHA INC. 3 SHOULD SPECIFICALLY STATE THE GROUNDS ON WHICH PENA LTY WAS SOUGHT TO BE IMPOSED AS THE ASSESSEE SHOULD KNOW TH E GROUNDS WHICH HE HAS TO MEET SPECIFICALLY. 4) THE AFORESAID PRINCIPLE HAS BEEN REITERATED IN THE IN THE CASE OF CIT VS. SSA'S EMERALD MEADOWS: 73 TAXMANN.C OM 241 (KAR) [REVENUES SLP DISMISSED IN 242 TAXMAN 18 0] 8. HENCE, RESPECTFULLY FOLLOWING THE ORDER OF THE H ONBLE JURISDICTIONAL HIGH COURT, SINCE THE AO HAS NOT BEE N SPECIFIED U/S 274 AS TO WHETHER PENALTY IS PROPOSED FOR ALLEG ED CONCEALMENT OF INCOME OR FURNISHING OF INACCURAT E PARTICULARS OF SUCH INCOME, THE PENALTY LEVIED IS HEREBY OBLIT ERATED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/10/2021. SD/- SD/- (DR. B. R. R. KUMAR) (AMIT SHUKLA) ACCOUNTANT MEMBER JUD ICIAL MEMBER DATED: 21/10/2021 *SUBODH KUMAR, SR. PS* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR