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| The Tax Publishers2020 TaxPub(DT) 3803 (Mum-Trib) : (2021) 088 ITR (Trib) 0270 INCOME TAX ACT, 1961
Section 271(1)(c)
Penalty notice issued under section 274 read with section 271(1)(c) without mentioning particular charge of offence against assessee was defective and, therefore, penalty levied on the basis of such notice could not be sustained.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars of income - Non-specification of particular charge of offence in penalty notice -
AO pursuant to search conducted in assessee's case made addition on account of bogus purchases and levied penalty under section 271(1)(c). Assessee's case was that penalty proceedings were initiated against assesse on both the charges, i.e., concealment of particulars of income as well as for furnishing of inaccurate particulars of income. CIT(A) invoked Explanation 5A to section 271(1)(c) and confirmed addition. Held: 'Concealment of particulars of income' and 'furnishing of inaccurate particulars of income', are two different charges. These two expressions, carry different connotation/meaning and revenue was unable to demonstrate that specific charge was ever framed and confronted to assessee during penalty proceedings and non-framing of specific charge against assesse was against principles of natural justice and vitiated penalty proceedings. Further, incriminating statement made by alleged entry operator, was never confronted to assessee and no opportunity of cross-examination was provided to assessee. Therefore, Explanation 5A to section 271(1)(c) did not get attracted and, levy of penalty was not justified.
Relied:CIT v. Samson Perinchery (2017) 88 taxmann.com 413 (Bom) : 2017 TaxPub(DT) 0672 (Bom-HC)
REFERRED :
FAVOUR : in assessee's favour
A.Y. : 2007-08 to 2012-13
IN THE ITAT, MUMBAI BENCH
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