INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Notice under section 247 - Notice not specifying grounds on which penalty sought to be imposed -

Assessee filed appeal against the order of CIT(A) affirming the penalty order passed under section 271(1)(c) on the ground that show-cause notice issued under section 271(1)(c)/274 does not specify whether it had concealed the particulars of income or had furnished inaccurate particulars of income.Held: In order to initiate the penalty proceedings against the assessee goes to prove that the AO himself was not aware/sure as to whether he was issuing notice to initiate the penalty proceedings either for 'concealment of particulars of income' or for 'furnishing of inaccurate particulars of such income'. When the charge is to be framed against any person so as to move the penal provisions against him/her, he/she is required to be specifically made aware of the charges to be leveled against him/her Thus, following the decisions rendered in the cases of CIT v. SSA's Emerald Meadows [(2016) 242 Taxman 180 (SC) : 2016 TaxPub(DT) 4242 (SC)] and Pr. CIT vs. Sahara India Life Insurance Company Ltd.[ ITA 475/2019 Order, dated 2-8-2019 : 2019 TaxPub(DT) 6933 (Del-HC)] it was held that when the notice issued by AO was bad in law being vague and ambiguous, one having not specified under which limb of section 271(1)(c), the penalty proceedings initiated under section 271(1)(c) were not sustainable.

Followed: CIT v. SSA's Emerald Meadows [(2016) 242 Taxman 180 (SC) : 2016 TaxPub(DT) 4242 (SC)] and Pr. CIT vs. Sahara India Life Insurance Company Ltd.[ ITA 475/2019 Order, dated 2-8-2019 : 2019 TaxPub(DT) 6933 (Del-HC)].

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2012-13

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