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2017 (2) TMI 995 - ITAT MUMBAI
Penalty order u/s 271(1)(c) - unexplained expenditure under Section 69C addition - non striking off of inaccurate particular or concealed income in the notice - Held that:- No explanation was offered by assessee for not reflecting such expenditure in books of accounts. Thus, it is a clear case of concealment of income. It was not a case that any legal claim of expanses was made and the same was disallowed during the assessment proceedings. The material was seized during the survey under section 133A, despite the evidence in possession of revenue the assessee has not shown the cash expanses in its books of account. In the explanation the assessee contended that there was no intention to hide or suppress anything. In our considered opinion the explanation offered by assessee is not satisfactory.
The issuance of notice is an administrative device for informing the assessee about the proposal of levy of penalty in order to enable him to explain why it should not be levied against him. If it is taken for the sake of argument that mere mistake in the language in the notice for non-striking off of ‘inaccurate particular’ or marking on ‘concealment of income’ portion cannot by itself invalidate the notice. Entire facts and backgrounds thereof are to be kept in mind. Every concealment of fact may ultimately result in filing of or furnishing inaccurate particular. As decided in CIT Vs Smt. Kaushalya (1995 (1) TMI 25 - BOMBAY High Court) while considering similar contention with regards to not striking off of inaccurate particular or concealed income in the notice, held, that mere not striking off specific limb cannot by itself invalidate notice issued under section 274 of the Act - Decided against assessee