INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Leviability - Specifying correct limb at time of initiation as well as at time of levy of penalty -

AO in instant case levied penalty under section 271(1)(c) for 'concealment of income' as well as 'furnishing of inaccurate particulars of income'. However, in assessment order AO had mentioned that penalty proceedings have been initiated for 'furnishing of inaccurate particulars of income'. Held: AO in assessment order had mentioned that penalty proceedings have been initiated for 'furnishing of inaccurate particulars of income'. However, at time of levying penalty, AO mentioned both limbs of clause (c) of section 271(1), i.e., 'concealment of income' as well as 'furnishing of inaccurate particulars of income'. This manner of recording of satisfaction suggests existence of ambiguity with reference to applicability of specific limb. Therefore, such penalty order was unsustainable in law.

Followed:CIT v. Shri Samson Perinchery (2017) 392 ITR 4 (Bom-HC) : 2017 TaxPub(DT) 672 (Bom-HC),

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09

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