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2021 (8) TMI 282 - AT - Income TaxPenalty u/s. 271(1)(c) - Non specification of fixed charge against assessee - whether the proceedings were initiated for concealing income or furnishing inaccurate particulars of income? - HELD THAT:- We have examined the notice under section 271(1)(c) of the Act and observed that assessing officer has not ticked any of the limbs, whether he has initiated the penalty on account of furnishing inaccurate particulars of income or concealment of particulars of income. From the notice for initiation of penalty under section 271(1)(c) of the Act, we see that there is no fix charge whether assessee has concealed the particulars of income or furnished inaccurate particulars of income. That is, assessing officer has not ticked any of the limbs for initiation of the penalty. It is by now well settled that while issuing a notice under section 271(1)(c) of the Act, the Assessing Officer is required to specify as to what is the default on the part of the assessee, as to whether the case is one of furnishing inaccurate particulars, or whether it is a case of concealment of income, or both. As no clear finding was given by the assessing officer regarding the invocation of the limb in the penalty notice. We note that Hon'ble Supreme Court in the case of T. Ashok Pai [2007 (5) TMI 199 - SUPREME COURT] held that "concealment of income" and "furnishing of inaccurate particulars of income" carry different connotations. From the facts of the present case, it is abundantly clear that Assessing Officer has not fixed the charge on the assessee. - AO has made addition and initiated penalty for violation of section 11(3)(d) of the Act (vide assessment order page No. 23), whereas the penalty is levied in penalty order for violation of section 11(3)(c) of the Act, as per para-3 of penalty order. Therefore, assessing officer is not aware as to what account he has initiated the penalty proceedings. The assessee's accounts are not rejected by the assessing officer and merely because the assessee could not file Form No. 10 before the Department does not mean that assessee has furnished inaccurate particulars of its income - Decided in favour of assessee.
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