Satyakriti Sarees Pvt. Ltd. , Kolkata V. DCIT,CIR-12(2), KOLKATA. , Kolkata

ITA 732/KOL/2023

AI Insights

The case involves Satyakriti Sarees Pvt. Ltd., which appealed against a penalty imposed by the Deputy Commissioner of Income Tax, Circle-12(2), Kolkata, for the Assessment Year 2014-15. The penalty was levied following an assessment under section 143(3) of the Income Tax Act, 1961, which added an amount of Rs. 89,603 for furnishing inaccurate particulars of income. The primary legal contention was the validity of the showcause notice, which did not specify whether the penalty was for concealment of income or for furnishing inaccurate particulars. The Tribunal referenced a similar case, Surjit Kaur Uberoi vs. ACIT, to support its decision to favor the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132618 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 19-07-2023
• Other Referred Cases: Surjit Kaur Uberoi vs. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R.K. SINGH
• Keywords: Set aside
• Section: 271(1)(c); 143(3); 250; 274

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI SANJAY GARG, HON’BLE JUDICIAL MEMBER & DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 732/Kol/2023 Assessment Year: 2014-15 Satyakriti Sarees Pvt. Ltd. P-6, Kalakar Street 1 st Floor Burrabazar Kolkata - 700007 [PAN: AAMCS9939F] Vs Deputy Commissioner of Income Tax, Circle-12(2), Kolkata अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri R.K. Singh, Advocate Revenue by : Shri P.P. Barman, Addl. CIT, Sr. D/R सुनवाई कᳱ तारीख/Date of Hearing : 04/09/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 22/09/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal has been filed by the assessee is directed against the order of the National Faceless Appeal Centre (hereinafter ‘the ld. CIT(A)’) passed u/s 250 of the Income Tax Act, 1961 (hereinafter ‘the Act’), dt. 14/06/2023, for Assessment Year 2014-15. 2. The sole grievance of the assessee is against the levy of penalty at Rs. 27,688/- levied u/s 271(1)(c) of the Act. From the grounds it has been contended that the showcause notice issued u/s 274/271 of the Act is bad in law as the specific charge is not levelled against the assessee as to whether the assessee has been met for concealing the particulars of income or furnishing inaccurate particulars of income. Reliance was placed on the order of Co-ordinate Bench of ITAT Kolkata in the case of Surjit Kaur Uberoi vs. ACIT in ITA No. 28/Kol/2023; Assessment Year 2013-14, order dt. 16/03/2023. I.T.A. No. 732/Kol/2023 Assessment Year: 2014-15 Satyakriti Sarees Pvt. Ltd. 2 On the other hand, the ld. D/R supported the orders of the lower authorities. 3. We notice that the assessee is a private limited company. Assessment u/s 143(3) of the Act for Assessment Year 2014-15 was completed on 30/12/2016 and the addition included amount of Rs.89,603/- made for furnishing of inaccurate particulars of income. The penalty proceedings u/s 271 of the Act were initiated and showcause notice u/s 274 r.w.s. 271(1)(c) of the Act issued on 30/12/2016 and the said notice is reproduced below:- 4. From perusal of the above notice, we find that the ld. Assessing Officer has not struck off one of the charge not applicable to the I.T.A. No. 732/Kol/2023 Assessment Year: 2014-15 Satyakriti Sarees Pvt. Ltd. 3 assessee and in absence of levelling specific charged for levying penalty u/s 271(1)(c) of the Act which has been consistently held by the Hon’ble Courts that such notice is illegal and bad in law and, therefore, the proceedings carried out thereafter, becomes illegal. 5. Recently, this Tribunal in the case of Surjit Kumar Uberoi (supra) dealing with the similar issue, has decided the issue in favour of the assessee observing as follows:- “5. We have duly considered the rival contentions and gone through the copy of the show-cause notice available on page no. 1 of the paper book. It is very debatable issue across the country, whether penalty could be imposed upon an assessee in the absence of any specific charge in the show-cause notice issued under section 274 read with section 271(1)(c) of the Income Tax Act. In other words, the ld. Assessing Officer is required to specify the charge on which an assessee has to give explanation, namely whether penalty is to be imposed upon the assessee for concealment of income or for furnishing of inaccurate particulars. In the judgments cited before us, this question has been answered in favour of the assessee, i.e. in case, the charge is not specified in the show-cause notice, then penalty would not be imposable upon the assessee.” 6. Respectfully following the same and since the facts of the case are identical and the notice issued u/s 274 r.w.s. 271(1)(c) of the Act suffers from an inherent error in absence of any specific charge raised against the assessee. We set aside the finding of the ld. CIT(A) and delete the penalty. 7. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 22 nd September, 2023 at Kolkata. Sd/- Sd/- (SANJAY GARG) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 22/09/2023 *SC SrPs I.T.A. No. 732/Kol/2023 Assessment Year: 2014-15 Satyakriti Sarees Pvt. Ltd. 4 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata