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2023 (7) TMI 690 - HC - Income TaxPenalty u/s 271(1)(C) - manadation of recording satisfaction which limb of the provisions of Section 271(1)(c) of the Act was triggered - whether proceedings were triggered against the respondent/assessee for concealment of income or furnishing inaccurate particulars? - Tribunal concluded, that the penalty order could not be sustained - HELD THAT:- There cannot be any dispute, that the AO failed to clearly reflect his satisfaction in the penalty notice, as to which limb of the provisions of Section 271(1)(c) of the Act was triggered vis-a-vis the respondent/assessee. As indicated above, in a given case, both limbs may get attracted, but even in such situation the AO would need to set forth his prima facie, satisfaction in the penalty notice. The reason, perhaps, why the Legislature has provided for two circumstances in Section 271(1)(c) to our minds, emanates from the need to distinguish between the gravity and consequences which may accompany concealment of particulars of income, as against a case which involves furnishing inaccurate particulars. The quantum of penalty, that the AO may levy, would depend on which slot and/or limb of Section 271(1)(c) of the Act, the assessee’s infraction falls in. No substantial of law.
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