Shri Shashank Purushottam Deshpande, Pune V. Income-Tax Officer, Ward 3(1), Pune

ITA 926/PUN/2022

AI Insights

The case involves an appeal by Shri Shashank Purushottam Deshpande against a penalty imposed by the Income Tax Officer, Ward 3(1), Pune, which was later affirmed by the National Faceless Appeal Centre (NFAC), Delhi. The penalty of Rs. 85,251 was levied under Section 271(1)(c) of the Income Tax Act, 1961, for the Assessment Year 2016-17. The primary contention in the appeal was the procedural inadequacy of the penalty show cause notice, which failed to specify the exact nature of the alleged wrongdoing by the taxpayer—whether it was concealment of income or furnishing of inaccurate particulars. The Tribunal, referencing a landmark decision by the Bombay High Court, found the notice to be deficient and thus invalidated the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137527 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 19-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 20-12-2022
• 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); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.926/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2016-17 Shri Shashank Purushottam Deshpande Flat No.30, Ruchi Apartments, Pulachi Wadi602, Deccan Gymkhana, Pune – 411004 PAN : AAOPD8832F Vs. ITO, Ward 3(1), Pune Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : This assessee’s appeal for AY 2016-17 arises against the NFAC, Delhi’s order dated 05-12-2022 passed in case No.ITBA/NFAC/S/250/2022-23/1047812141(1) in proceedings under Section 250 of the Income Tax Act, 1961, in short ‘the Act’. Heard both the parties. Case file perused. Assessee by Shri Sarang Gudhate Revenue by Shri M.G. Jasnani Date of hearing 20-04-2023 Date of pronouncement 24-04-2023 ITA No.926/PUN/2022 Shri Shashank Purushottam Deshpande 2 2. Coming to the assessee’s sole substantive grievance that both the learned lower authorities have erred in law and on facts in levying section 271(1)(c) of the Act penalty of Rs.85,251/- in Assessing Officer’s order dated 27.06.2019 as affirmed in the NFAC’s detailed discussion, we find during the course of hearing that there is hardly any need for us to delve deeper in the relevant factual matrix. This is for the precise reason that the Assessing Officer’s corresponding penalty show cause notice dated 24.12.2018 (page 23 in assessee’s paper book) had nowhere specified as to whether the taxpayer herein had concealed the particulars of its income or furnished inaccurate particulars thereof. Faced with the situation, we quote hon’ble jurisdictional high court’s recent landmark decision in Mohd. Farhan A. Shaikh vs. ACIT (2021) 434 ITR 1 (Bom) (FB) holding that the Assessing Officer’s failure in quoting the specified limb in his corresponding penalty show cause notice indeed vitiates the validity of these proceedings. We draw strong support from therefrom to delete the impugned penalty. Ordered accordingly. All other pleadings on merits stand rendered academic. ITA No.926/PUN/2022 Shri Shashank Purushottam Deshpande 3 3. This assessee’s appeal is allowed in the above terms. Order pronounced in the Open Court on 24 th April, 2023. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे Pune; ᳰदनांक Dated : 24 th April, 2023 GCVSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order is forwarded to: 1. अपीलाथᱮ / The Appellant; 2. ᮧ᭜यथᱮ / The Respondent; 3. 4. The concerned Pr.CIT, Pune िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, पुणे “B” / DR ‘B’, ITAT, Pune 5. गाडŊ फाईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune