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2021 (6) TMI 128 - AT - Income TaxPenalty u/s. 271(1)(c) - Defective notice u/s 274 - "concealment of income" or "frurnishing of inaccurate particulars of income" - HELD THAT:- We note that in assessment proceedings the assessing officer has initiated the penalty proceedings on account of "furnishing inaccurate particulars of income", whereas in penalty proceedings, the assessing officer has imposed the penalty on account of both the limbs, that is, "for concealment of income and furnishing inaccurate particulars of income", hence charge of penalty itself is not certain, therefore, the penalty should not be imposed. AO has initiated the penalty proceedings on one footing and concluded on other footing. In instant case, "for furnishing inaccurate particulars of income" was not the charge against the assessee; the charge was "Concealment of particulars of income". Therefore, in our opinion, the basis of levy of penalty itself is not correct, hence penalty order under section 271(1)(c) of the Act needs to be quashed. Accordingly, we quash the penalty order under section 271(1) (c) of the Act. Appeal of the assessee is allowed.
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