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08-03-2019, Ratan Kumar Sharma, Section 271(1)(c), Tribunal Jaipur

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2 months 1 week ago #8767 by amit
Section - 271(1)(c), 271, 274
Order Date - 08-03-2019
Favouring - Assessee
Court - Tribunal Jaipur
Appellant - Ratan Kumar Sharma
Respondent - ITO
Citation - 319Taxpundit216
Appeal No. - ITA No. 176/JP/2018
Asstt. Year - 2010-11



This is an appeal filed by the assessee against the order of ld.CIT(A)-3, Jaipur dated 07/12/2017 for the A.Y. 2010-11 in the matter of imposition of penalty U/s 271(1)(c) of the Income Tax Act, 1961 (in short the Act).

2. The only grievance of the assessee relates to levy of penalty at Rs. 18,99,042/- U/s 271(1)(c) of the Act without specifying in which limb of Section 271(1)(c) of the Act the penalty proceedings has been initiated as to whether it was for concealment of income or for furnishing inaccurate particulars of income.

3. Rival contentions have been heard and record perused. The facts in brief are that the assessee is a Doctor and was a proprietor of Sharma XRay and Clinic Jaipur. Besides the above activity he is deriving income from pension and other sources. A search u/s 132 of the I.T. Act, 1961 took place at the residence and clinic of assessee on 17-2-2011. The assessee at that time was 80 years old and during the search period his wife aged about 77 years was only at residence, with the assessee. The assessee has one son Shri Dinesh Sharma and three daughters. His son and two daughters alongwith theirs respective families are permanently residing in USA while one daughter along with her family living in Jaipur separately to the assessee. In course of search petty cash, small quantity of jewellery and some loose papers and diaries etc. were found. Statement(s) of the assessee Shri Ratan Kumar Sharma was recorded and his said statement(s) he admitted and surrendered additional income in his hands in the hands of his wife Smt. Maya Sharma, in the hands of his son Dinesh Sharma and grand daughter Neha Sharma. The Ld. A.O. issued notice u/s 153A in case of assessee. The assessee filed his return of income in response to said notice issued u/s 153A declaring an income of Rs. 1,59,92,770/-. The Ld. A.O. completed assessment u/s 153A/143 (3) at an income of Rs. 3,52,99,670/- after making an addition of Rs. 1,74,01,200/- on account of long term capital gain on sale of immovable property(s) and Rs. 19,05,700/- under some other heads. In appeal CIT (A) reduced the amount of LTCG of Rs. 1,74,01,200/- to Rs. 94,95,211/- but sustained other additions made by Ld. A.O. In further appeal before Hon'ble ITAT other additions Rs.19,05,700/- were deleted by the Hon’ble Bench. Thus finally leaving an addition on account of LTCG amounting to Rs. 94,95,211/- to the returned income. The A.O. also levied penalty for the addition so upholding U/s 271(1)(c) amounting to Rs. 18,99,042/-, which was confirmed by the ld. CIT(A) against which the assessee is in further appeal before us.

4. The ld AR Mr. S.R. Sharma, C.A. appeared on behalf of the assessee and submitted that the penalty i bad in law as notice issued u/s 271 (1) (c) of the Act is improper and invalid. Our attention was drawn to the assessment order the A.O. held in para 8.3 of the order that “penalty proceedings u/s 271(1)(c) of the Act is initiated for furnishing the inaccurate particulars of income and concealment of income and at the bottom of the assessment order” issue penalty notice u/s 271 (1) (c) of the Act for concealment of income / inaccurate particulars of income.” In the assessment order thus there is no satisfaction that whether the penalty is initiated for concealment of income or furnishing of inaccurate particulars of income.

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