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2023 (11) TMI 852 - AT - Income TaxPenalty u/s. 271(1)(c) - Defective notice u/s 274 - Difference in charge for levying penalty in SCN and as per impugned penalty order - whether to levy penalty on concealment of Income or furnishing of inaccurate particulars of Income? - as per assessee AO levied penalty for furnishing inaccurate particulars of income whereas in the notice issued section 274 Appellant was asked to show cause why penalty should not be levied for concealing particulars of income - HELD THAT:- It is clear that while the Assessment Order records satisfaction of the AO that the Appellant has furnished inaccurate particulars of income, the notice issued under Section 274 of the Act state that the Appellant has been charged with concealment of particulars of income. However, while passing the penalty order, penalty has been levied on the Appellant for furnishing inaccurate particulars of income. Penalty notices put the Appellant to notice about the charge of concealment of particulars of income whereas in the impugned penalty order penalty under Section 271(1)(c) of the Act has been levied for furnishing inaccurate particulars of income. Thus, the Appellant has not been informed about the charge/grounds on which penalty under Section 271(1)(c) of the Act is sought to be levied through statutory notice issued under Section 274 of the Act and therefore, the test laid down by the Hon’ble Bombay High Court in the case of Mohd. Farhan A Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] is not satisfied. Since, in the present case the penalty proceedings were initiated under one limb of Section 271(1)(c) for furnishing inaccurate particulars of income whereas the penalty has been levied after finding the Appellant guilty under the other limb of Section 271(1)(c) for furnishing inaccurate particulars of income, the penalty order levying penalty u/s 271(1)(c) of the Act cannot be sustained - Decided in favour of assessee.
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