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2019 (3) TMI 562 - AT - Income TaxPenalty u/s 271(1)(c) - estimation of profit of business - jurisdiction of AO levying the penalty on both the limbs i.e. for concealment of particulars of income and furnishing of inaccurate particulars of income - non specification of charge - HELD THAT:- Penalty order passed by the AO under section 271(1)(c) of the Act is on the charge of inaccurate particulars of income in relation to estimation of business income whereas initiation is on the charge in the order of assessment is for concealment of particulars of income under section 271(1)(c) of the Act. The penalty cannot be levied under section 271(1)(c) of the Act on the charge which is different than the charge initiated i.e. charge initiated under section 271(1)(c) of the Act and penalty levied under different charge for filing of inaccurate particulars of income. See SHRI SAMSON PERINCHERY [2017 (1) TMI 1292 - BOMBAY HIGH COURT] Specific charge - AO while levying penalty under section 271(1)(c) of the Act in his discussion clearly stated that the expression used in section 271(1)(c) of the Act “furnishing of inaccurate particulars of income” and “concealing the particulars of income” are two distinct term but according to him both lead to the same effect. He acknowledged that making bogus claim of expenses/ expenditure/ deduction / excess claim of depreciation amounts to furnish of inaccurate particulars income and therefore false claim of expenditure would amount to concealing the particulars of income or deliberate in furnishing inaccurate particulars of such income. Hence, on the issue of specific charge penalty levied by the AO cannot be sustained. - Decided in favour of assessee.
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