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2016 (12) TMI 110 - AT - Income TaxPenalty u/s 271(1)(c) - whether the AO can initiate penalty on the charge of furnishing of inaccurate particulars of income and levy on both charges of concealment of income and furnishing of inaccurate particulars of income? - Held that:- There must be a precise charge and imposition of penalty must be on that footing only. In our view , before levying penalty on the assessee, the AO must apprise the assessee of the precise charge levelled against him. He must be told vividly whether he is guilty of concealment of income or for furnishing inaccurate particulars of income. Section 271(1)(c) r.w.s. 274 provides for a reasonable opportunity to be given to the assessee so that he can avail the opportunity to defend himself. Where the penalty proceedings are initiated on a particular footing or charge of concealment of income but final conclusion of levy of penalty is based upon some different footing altogether of concealment of income and also furnishing of inaccurate particulars of income, in that case it can not be presumed that the assessee has been given a reasonable opportunity of being heard before order imposing penalty is passed. In such case the imposition is not justified. Accordingly we set aside the order of CIT(A) and direct the AO to delete the penalty - Decided in favour of assessee
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