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2019 (5) TMI 183 - AT - Income TaxPenalty passed u/s 271[1][c] - defective notice - penalty proceedings is initiated for furnishing of inaccurate particulars of income or concealment of income - HELD THAT:- Penalty proceedings are attracted only where the assessee has concealed the particulars of income or furnished inaccurate particulars of such income. It is well accepted proposition that the aforesaid two limbs of section 271(1)(c) carry different meaning and the AO should be clear as to the limb under which penalty is being levied. When the AO proposes to invoke the first limb being concealment of income, notice has to be appropriately marked. In the present case, we found that the AO has marked the concealment of particulars of income and furnishing of inaccurate particulars of income. It is imperative and clear that the AO is not sure on which limb the penalty is being levied. Passing of penalty order u/s 271(1)(c), found that there is no application of mind by the AO as he has marked both limbs of notice which is bad in law. We set aside the order of the CIT(A) and cancel the penalty order dated 31/12/2007 and allow the grounds of appeal of the assessee. - Decided in favour of assessee.
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