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2017 (11) TMI 500 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of depreciation on the property in respect of newly purchased property - Held that:- The concealment involves knowledge on part of the assessee of the real income while giving or disclosing the particulars of income. The furnishing of inaccurate particulars of income, on the other hand includes items which have been though shown in the return of income but is not correct or has been wrongly shown or clarified. The Assessing Officer at the time of issuance of notice to the assessee must disclose to the assessee about the charge on which he proposes to initiate or levy the penalty under this section. The show cause notice issued should be without any ambiguity and has to be very specific about the charge. The Assessing Officer in the assessment order has initiated the penalty proceedings under section 271(1)(c) under both the limbs and has failed to specify in the show cause notice (u/s 274 read with section 271(1)(c) about the charge for which he wishes to initiate penalty proceedings. Finally the penalty has been levied for furnishing of inaccurate particulars. This shows that he has not applied his mind or was specific about his satisfaction under which limbs which intends to initiate or levy of penalty. - Appeal of the assessee is allowed.
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