{"id":21369,"date":"2019-11-30T11:33:30","date_gmt":"2019-11-30T06:03:30","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=21369"},"modified":"2019-11-30T11:33:30","modified_gmt":"2019-11-30T06:03:30","slug":"pcit-vs-goa-coastal-resorts-recreation-pvt-ltd-bombay-high-court-levy-of-penalty-u-s-2711c-is-not-valid-if-i-there-is-no-record-of-satisfaction-by-the-ao-that-there-was-any-concealment-of-income","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/pcit-vs-goa-coastal-resorts-recreation-pvt-ltd-bombay-high-court-levy-of-penalty-u-s-2711c-is-not-valid-if-i-there-is-no-record-of-satisfaction-by-the-ao-that-there-was-any-concealment-of-income\/","title":{"rendered":"PCIT vs. Goa Coastal Resorts & Recreation Pvt. Ltd (Bombay High Court)"},"content":{"rendered":"

IN THE HIGH COURT OF BOMBAY AT GOA
\nTAX APPEAL NO. 24 OF 2019
\nTHE PRINCIPAL COMMISSIONER OF
\nINCOME TAX (CENTRAL), BENGALURU … Appellant
\nVersus
\nGOA COASTAL RESORTS AND RECREATION
\nPVT. LTD. … Respondent
\nMs. Amira Abdul Razaq, Advocate for the appellant.
\nShri P. Rao, Advocate for the respondent.
\nCoram:- M. S. SONAK &
\nNUTAN D. SARDESSAI, JJ.
\nDate:- 11th November, 2019
\nORAL ORDER : (Per M.S. Sonak,J)
\nHeard Ms Razaq, learned Advocate for the appellant and Shri.
\nRao, learned Advocate for the respondent No.2.
\n2. Ms. Razaq, learned Advocate for the appellant urges
\nadmission of this appeal on the following substantial questions of
\nlaw:
\n2 TXA 24 of 2019
\ni) Whether on the facts and in the circumstances of
\nthe case, the Tribunal is right in law and fact, in
\ndeleting the penalty levied u\/s. 271(1) (c) of the
\nIncome Tax Act, 1961?
\n3. Ms Razaq, learned Advocate submits that in this case the
\nrevised returns filed by the respondents indicated that the
\ndisclosures were made only by piecemeal. Relying upon Mak Data(P.) Ltd v\/s. Commissioner of Income Tax<\/a> 1, she submits that such
\ndisclosure does not relieve the assessee of the requirement of paying
\npenalty. He submits that the assessment order in the present case
\nmakes reference to concealment and\/or inaccurate particulars. In
\nthis view of the matter, she submits that the substantial questions of
\nlaw as aforesaid will be arises and the view taken by the
\nCommissioner (Appeals) as well as the ITAT in relation the deletion
\nof penalty, warrants interference.
\n4. Mr Rao, learned Advocate for the assessee points out that
\nthere is absolutely no finding as regards concealment or furnishing
\nof inaccurate particulars. He further points out that in the notice
\nissued to the assessee on 30\/09\/2016, the Deputy Commissioner
\nhad not even bothered to strike down the relevant portion of the
\nprinted form in order to indicate whether the satisfaction is based
\n1 [(2013) 38 Taxman.com 448 (SC)]
\n3 TXA 24 of 2019
\nupon the concealment of particulars or furnishing of inaccurate
\nparticulars. He relies on Commissioner of Income Tax-11 v\/s. ShriSamson Perinchery<\/a>2 and Principal Commissioner of Income Tax v\/s.
\nNew Era Sova Mine3 to submit that on the basis of such a defective
\nnotice, award of penalty can never be sustained.
\n5. We have carefully examined the record as well as duly
\nconsidered the rival contentions. Both the Commissioner (Appeals)
\nas well as the ITAT have categorically held that in the present case,
\nthere is no record of satisfaction by the Assessing Officer that there
\nwas any concealment of income or that any inaccurate particulars
\nwere furnished by the assessee. This being a sine qua non for
\ninitiation of penalty proceedings, in the absence of such petition,
\nthe two authorities have quite correctly ordered the dropping of
\npenalty proceedings against the petitioner.
\n6. Besides, we note that the Division Bench of this Court in
\nSamson(supra) as well as in New Era Sova Mine (supra) has held
\nthat the notice which is issued to the assessee must indicate whether
\nthe Assessing Officer is satisfied that the case of the assessee
\n2 [(017) 392 ITR 4]
\n3 [2019 SCC OnLine Bom 1032]
\n4 TXA 24 of 2019
\ninvolves concealment of particulars of income or furnishing of
\ninaccurate particulars of income or both, with clarity. If the notice is
\nissued in the printed form, then, the necessary portions which are
\nnot applicable are required to be struck off, so as to indicate with
\nclarity the nature of the satisfaction recorded. In both Samson
\nPerinchery and New Era Sova Mine (supra), the notices issued had
\nnot struck of the portion which were inapplicable. From this, the
\nDivision Bench concluded that there was no proper record of
\nsatisfaction or proper application of mind in matter of initiation of
\npenalty proceedings.
\n7. In the present case, as well if the notice dated 30\/09\/16 (at
\npage 33) is perused, it is apparent that the relevant portions have
\nnot been struck off. This coupled with the fact adverted to in
\nparagraph (5) of this order, leaves no ground for interference with
\nthe impugned order. The impugned order are quite consistent by
\nthe law laid down in the case of Samson Perinchery and New Era
\nSova Mine(supra) and therefore, warrant no interference.
\n8. The contention based upon MAK Data (P.) Ltd.(supra) also
\ndoes not appeal to us in the peculiar facts of the present case. The
\nnotice in the present case is itself is defective and further, there is no
\n5 TXA 24 of 2019
\nfinding or satisfaction recorded in relation to concealment or
\nfurnishing of inaccurate particulars.
\n9. For the aforesaid reasons, we hold that no substantial
\nquestions of law arises in this appeal. Consequently, this appeal is
\ndismissed.
\nNUTAN D. SARDESSAI, J. M. S. SONAK, J.
\nmv<\/p>\n","protected":false},"excerpt":{"rendered":"

The notice which is issued to the assessee must indicate whether the Assessing Officer is satisfied that the case of the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded<\/p>\n

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