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2017 (9) TMI 1396 - AT - Income TaxPenalty u/s 271(1)(C) - Addition of ₹ 2.20 crores made/offered during the assessment proceedings - exact charge on which penalty imposed - proof of inaccurate particulars and concealment of income - Held that:- A perusal of the quantum assessment order reveals that the penalty has been initiated for furnishing of inaccurate particulars of income and concealment of income by invoking both Section 271(1)(c) and Section 271 AAA which altogether operate in different circumstances. Moreover, furnishing of inaccurate particulars and concealment of income as per settled legal propositions, are different connotations and carry different meaning and two separate limbs. The same also becomes clear from the language of show-cause notice which states that the assessee have concealed the particulars of income or furnished inaccurate particulars of income. Finally, the penalty has been levied for concealment u/s 271(1)(c) which shows confusion / doubt prevailing in the mind of Ld. AO. Undisputedly, the AO was required to specify the exact charge for which the assessee was being penalized which he has failed to do so and the same has resulted into taking away assessee’s valuable right of contesting the same and thereby violates the principles of natural justice. We are of the considered opinion that the penalty proceedings stood vitiated for want of satisfaction and in violation of principle of natural justice and therefore, liable to be quashed. We held so which results into dismissal of revenue’s appeal.
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