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2015 (9) TMI 57 - AT - Income TaxPenalty levied under section 271(1)(c) - assessee had not offered this amount of ₹ 7,63,600 in its return of income filed under section 139(1) the assessee has concealed his particulars of income - Held that:- Levy of penalty has to be clear as to the limb for which it is levied and the position being unclear penalty is not sustainable. Therefore, when the Assessing Officer proposes to invoke the first limb being conceal ment, then the notice has to be appropriately marked. Similar is the case for furnishing inaccurate particulars of income. The standard pro forma without striking of the relevant clauses will lead to an inference as to non-application of mind. Penalty proceedings having been initiated on the ground of "furnishing inaccurate particulars of income", imposition of penalty on the ground of "concealment of income" was not justified. See K. M. Bhatia (Quarry) v. CIT reported in [1991 (7) TMI 56 - GUJARAT High Court] - In the instant cases we have noticed that the Assessing Officer has initiated penalty proceedings under one default or limb of section 271(1)(c) of the Act, but levied for another default or limb of that section - Decided in favour of assessee.
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