INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment of income or furnishing of inaccurate particulars of income - Specification of charge -

AO imposed penalty under section 271(1)(c) on assessee which he assailed the same contending that AO had not specified as to whether the allegation was regarding concealment of income or furnishing of inaccurate particulars of income and therefore, this notice was bad in law and based on this notice, penalty cannot be imposed under section 271(1)(c) as held by High Court in the case of CIT v. Manjunatha Cotton and Ginning Factory (2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC). Held: As per assessment order, allegation made by AO was only regarding concealment of income and as per penalty order passed by AO, penalty was imposed by AO on the basis that the assessee was guilty of concealment of income. Since as per the notice issued by AO under section 274 read with section 271, the assessee was asked to explain about this allegation of concealment of income also, the principle of natural justice was followed in the present case and High Court rendered in the case of CIT v. Manjunatha Cotton and Ginning Factory, (2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC) was not applicable in the present case. No argument was advanced by assessee regarding merit of the penalty or on any other aspect. Therefore, appeal was dismissed.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

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