Case Law Details
K. World Developers Pvt. Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that issuance of notice under section 274 r.w.s. 271(1)(c) of the Income Tax Act without specifying the particular limb under which the penalty proceedings have been initiated concludes that the notice is issued in a stereotyped manner without applying mind and accordingly imposition of penalty is bad in law.
Facts- AO noticed that the Assessee has received the share capital of Rs.35,00,000/- from Ankay Associates Pvt., a company found to be controlled and managed by one Shri Anil Agarwal who had admitted in his statement that the company M/s. Ankay Associates Pvt. Ltd. does not undertake any business activity except providing the accommodation entries, made the addition of Rs.35,00,000/- on account of bogus share capital by passing assessment order dated 30.03.2015 u/s. 153A/143(3) of the Act.
On the basis of said addition Rs.35,00,000/-, AO recorded his satisfaction for initiation of penalty proceedings u/s. 271(1)(c) of the Act for furnishing inaccurate particulars of income. Accordingly, after relying upon various decisions, AO imposed a penalty of Rs.10,81,500/- @ 100% of the tax sought to be evaded vide penalty order dated 20.03.2018 for furnishing inaccurate particulars of income.
CIT(A) affirmed the penalty order. Accordingly, being aggrieved, the present appeal is filed.
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