INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particualrs - Non-mention of particular charge of offence in penalty notice -

Assessee challenged penalty levied by AO under section 271(1)(c) on the ground of non-mention of particulars charge of offence in penalty notice.Held: AO issued printed form of notice under section 274 read with section 271(1)(c) without striking off irrelevant portion of notice, which was applicable to the facts of assessee's case. Even, AO had initiated penalty proceedings for concealment of particulars of income. But in the penalty order AO levied penalty under section 271(1)(c) for concealment particulars of incomed and for furnishing inaccurate particulars of income. Thus, it was very clear that AO has not arrived at clear satisfaction as to under which limb of provisions of section 271(1)(c), the proposed penalty proceedings has been initiated, which was evident from the fact that there was no clear satisfaction in the assessment order and notice was absolutely silent on this aspect. Accordinlgy order imposing penalty passed by AO under section 271(1)(c) was illegal and bad-in-law.

Supported by:CIT v. Samson Perinchery [ITA No. 1154/Mum/2015, dt. 5-1-2017] : 2017 TaxPub(DT) 672 (Bom-HC), CIT & Ors. v. Manjunatha Cotton & Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC), CIT & Anr. v. SSA's Emerald Meadows (2016) 242 Taxmann 180 (SC) : 2016 TaxPub(DT) 4242 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05

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