TMI Blog2015 (6) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... rate particulars. The Apex Court in the case of Ashok Pai reported in [2007 (5) TMI 199 - SUPREME Court ] has held that concealment of income and furnishing inaccurate particulars of income carry different connotations. The Gujarat High Court in the case of MANU ENGINEERING reported in [1978 (9) TMI 18 - GUJARAT High Court ] and VIRGO MARKETING [2008 (1) TMI 885 - DELHI HIGH COURT] has held that levy of penalty has to be clear as to the limb for which it is levied and the position being unclear penalty is not sustainable. Therefore, when the Assessing Officer proposes to invoke the first limb being concealment, then the notice has to be appropriately marked. Similar is the case for furnishing inaccurate particulars of income. The standard p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-12-2012 and that this Tribunal has been following the said decision in various cases to which one of us, i.e. the JM is a signatory. The learned Departmental Representative, on the other hand, supported the orders of the authorities below. 3. Having regard to the rival contentions and the material on record, we find that the issue of validity of the notice wherein the AO has not struck off the irrelevant portion of the notice u/s 274 because of which the reason for levy of penalty is not evident, is covered by the judgment of the jurisdictional High Court in the case of M/s.Manjunatha Cotton and Ginning Factory (cited supra). The relevant portion of the judgment is reproduced hereunder for ready reference: 59. As the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to be held to be strictly construed, notice issued under Section 274 should satisfy the grounds which he has to meet specifically. Otherwise, principles of natural justice is offended if the show cause notice is vague. On the basis of such proceedings, no penalty could be imposed on the assessee. 60. Clause (c) deals with two specific offences, that is to say, concealing particulars of income or furnishing inaccurate particulars of income. No doubt, the facts of some cases may attract both the offences and in some cases there may be overlapping of the two offences but in such cases the initiation of the penalty proceedings also must be for both the offences. But drawing up penalty proceedings for one offence and finding the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty cannot validate the order of penalty which, when passed, was not sustainable. 61. The Assessing Officer is empowered under the Act to initiate penalty proceedings once he is satisfied in the course of any proceedings that there is concealment of income or furnishing of inaccurate particulars of total income under clause (c). Concealment, furnishing inaccurate particulars of income are different. Thus the Assessing Officer while issuing notice has to come to the conclusion that whether is it a case of concealment of income or is it a case of furnishing of inaccurate particulars. The Apex Court in the case of Ashok Pai reported in 292 ITR 11 at page 19 has held that concealment of income and furnishing inaccurate particulars of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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