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2023 (11) TMI 85 - HC - Income TaxPenalty u/s 271(1)(c) - Specific charge - Mandation of recording satisfaction regarding furnishing of inaccurate particulars of the income in the assessment order - whether failure on the part of AO to put to assessee a specific charge is fatal to the penalty proceedings, having regard to the provision of Section 271(1)(c)? - HELD THAT:- A perusal of the notice would show, something which the Tribunal has also recorded, that the AO did not indicate to the respondent/assessee as to whether this was a case of concealment of particulars or furnishing inaccurate particulars or even, as indicated above, the case where both charges were sought to be levelled against the respondent/assessee. The penalty order, as a matter of fact, injects greater confusion in this behalf. There is obviously an internal inconsistency in the penalty order. The AO begins by saying that the respondent/assessee had furnished inaccurate particulars of his income in respect of disallowance of various additions made by the AO and, then, while computing the penalty that he imposed on the respondent/assessee, he goes on to say that the respondent/assessee had furnished “inaccurate particulars of income or concealed income”. There was obviously no clarity in the mind of the AO as to which limb of Section 271(1)(c) got attracted in the instant case for initiation, followed by imposition of penalty. ITAT was justified in law in deleting the penalty - Decided in favour of assessee.
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