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2019 (6) TMI 395 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - defective notice - non specifying the charge u/s. 271(1)(c) - ‘concealment of income’ v/s ‘furnishing inaccurate particulars of income’ - HELD THAT:- A perusal of assessment order shows that penalty u/s. 271(1)(c) qua disallowance u/s. 14A has been initiated by mentioning both the limbs of section 271(1)(c). Thereafter, while passing penalty order dated 05-03-2015 the Assessing Officer again mentioned both the limbs of section 271(1)(c) Hon’ble Supreme Court of India in the case of T. Ashok Pai Vs. Commissioner of Income Tax [2007 (5) TMI 199 - SUPREME COURT] has held, “Concealment of income’ and ‘furnishing of inaccurate particulars” carry different connotations. Expression ‘concealment of income’ and ‘furnishing inaccurate particulars of income’ cannot be used interchangeably. ‘Concealment of income’ connotes where there is escapment of income from tax net by virtue of assessee concealing information/documents etc. or non-furnishing of information about income earned in the return of income during the relevant period. On the other hand expression ‘furnishing inaccurate particulars of income’ signifies where the assessee has furnished particulars of income but the information/documents furnished are false/wrong/incorrect or erroneous. In the instant case, there was ambiguity and vagueness in the mind of Assessing Officer while recording satisfaction with respect to charge u/s. 271(1)(c) to be invoked. The same ambiguity persisted at the time of passing order levying penalty. The Assessing Officer has to be specific and categoric in mentioning the charge u/s. 271(1)(c) at the time of recording satisfaction, as well as at the time of levy of penalty. Where penalty provisions have been invoked in indistinct manner, penalty proceedings would fail the test of legal requirements. Accordingly, the impugned order is set aside and the appeal of assessee is allowed.
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