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2020 (5) TMI 693 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non striking off the irrelevant/ inapplicable portion on the standard format - whether penalty proceedings were to be initiated for furnishing of inaccurate particulars of income or concealment of income? - HELD THAT:- AO had issued the notice u/s 274 r.w.s. 271 (1) (c) of the Act without striking off the irrelevant/ inapplicable portion on the standard format. As pointed out by the Ld. counsel, the AO can initiate penalty proceedings against the assessee once he is satisfied that there is concealment of income or furnishing of inaccurate particulars of income or both - as held in the case of CIT vs. Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT] that concealment of income and furnishing inaccurate particulars of income carry different connotations, therefore, the order imposing penalty has to be made only on ground on which penalty proceedings have been initiated Since the AO has issued the notice u/s 274 r.w.s. 271 of the Act in a mechanical manner without striking off the inapplicable portion of the notice printed on standard format, the impugned order passed by the Ld. CIT(A) is not sustainable in law. Hence, we find merit in the contention of the Ld. counsel - Decided in favour of assessee.
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