2017 (1) TMI 1292 - BOMBAY HIGH COURT

Penalty under Section 271 (1)(c) - difference between furnishing of inaccurate particulars of income and concealment of income - Held that:- The decision of the Supreme Court in Ashok Pai v/s. CIT [2007 (5) TMI 199 - SUPREME Court] [relied upon in Manjunath Cotton & Ginning Factory (2013 (7) TMI 620 - KARNATAKA HIGH COURT )] – wherein it is observed that concealment of income and furnishing of inaccurate particulars of income in Section 271(1)(c) of the Act, carry different meanings/ connotations. Therefore, the satisfaction of the Assessing Officer with regard to only one of the two breaches mentioned under Section 271(1)(c) of the Act, for initiation of penalty proceedings will not warrant/ permit penalty being imposed for the other breach. This is more so, as an Assessee would respond to the ground on which the penalty has been initiated/notice issued. It must, therefore, follow that the order imposing penalty has to be made only on the ground of which the penalty proceedings has been initiated, and it cannot be on a fresh ground of which the Assessee has no notice.

Therefore, the issue herein stands concluded in favour of the Respondent-Assessee by the decision of the Karnataka High Court in the case of Manjunath Cotton and Ginning Factory (supra). - Decided against revenue