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2022 (4) TMI 589 - ITAT SURATPenalty u/s 271(1)(c) - defective notice u/s 274 - non tickingoff any of limbs in notice - non striking of irrelevant portion in notice -addition of undisclosed income on account of ‘on-money’ paid to Shri Mahendra B Chavda on purchase of land - HELD THAT:- None of the limbs has been ticked by the assessing officer. That is, assessing officer has not ticked any of the limbs, therefore it is not clear whether assessing officer has initiated the penalty on account of furnishing inaccurate particulars of income or concealment of particulars of income. Thus, from the above 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. 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 stated above, 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. Notice under section 271(1)(c) of the Act, issued by the assessing officer, does not speak about any specific charge for which the penalty on the assessee is to be levied. It is not clear as to whether the assessee is being penalized for the concealment of income or for the furnishing of inaccurate particulars of income.Assessing Officer did not strike off the irrelevant portion in the notice, therefore it is not clear for which particular default the assessee is being penalized. Considering these facts, and the precedents applicable to these facts, we are of the view that penalty should not be imposed on the assessee. Accordingly, we delete the penalty. - Decided in favour of assessee.
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