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2019 (11) TMI 1629 - AT - Income TaxPenalty u/s 271(1)(c) - Non recording of specific reason - Defective notice u/s 274 - HELD THAT:- As perusal of the penalty order would indicate that the ld.AO has imposed penalty under section 271(1)(c) of the Act without recording any categorical finding, whether it is being imposed for concealment of income or furnishing inaccurate particulars of income - AO just in one-line held that penalty has been imposed “for concealing true particulars of income and furnishing inaccurate particulars of income.” Hon’ble Gujarat High Court in the case of Snita Transport P.Ltd. [2012 (12) TMI 981 - HIGH COURT OF GUJARAT]has propounded that the Assessing Officer ought to have recorded categorical finding for the breach for which he imposing penalty upon the assessee. In the penalty order he cannot use both the expression. While issuing show cause notice under section 274 r.w.s. 271(1)(c) of the Act for inviting explanation of the assessee, as to why penalty under section 271(1)(c) of the Act be not imposed upon the assessee, can use expression “or” between furnishing inaccurate particulars vis-à-vis concealment of income. However, while adjudicating the issue regarding imposition of penalty, the ld.AO has to record a conclusive finding for which he is imposing the penalty, i.e. whether he is imposing penalty for furnishing inaccurate particulars of income or for concealment of income. The ld.AO cannot use phrase that “penalty is being imposed for furnishing inaccurate particulars/concealment of income”. Appeal of the assessee is allowed.
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