TMI Blog2015 (10) TMI 2639X X X X Extracts X X X X X X X X Extracts X X X X ..... concealing particulars of income or for furnishing inaccurate particulars of income we respectfully following the decision in the case of Commissioner of Income Tax & Another vs. Manjunatha Cotton & Ginning Factory (2013 (7) TMI 620 - KARNATAKA HIGH COURT) wherein held that Notice u/s 274 of the Act should specifically state the grounds mentioned in section 271(1)(c) , i.e. whether it is for concealment of income or for furnishing of inaccurate particulars of income. Sending printed form where all the ground mentioned in section 271 are mentioned would not satisfy requirement of law, thus we hold that the penalty imposed u/s 271(1)(c) of the Act was improperly imposed by the AO - Decided in favour of assessee - ITA No. 314/LKW/2014 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as accepted. As such the income disclosed u/s 153A was accepted by the AO. During the penalty proceedings u/s 271(1)(c ) of the Act, the AO was of the view that the assessee was not having any intention to disclose the income found in the locker prior to search operation and that he had disclosed this income for tax purpose only in the course of search. He accordingly concluded that the assesee had concealed the particulars of income or furnished accurate particulars of income and accordingly imposed a penalty of ₹ 12 lacs u/s 271(1)(c) of the Act. The Ld. CIT (A), however, deleted the penalty on the ground that it was neither a case of concealment nor a case of accurate particulars as everything was shown in the income tax return and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty is proposed to be imposed for concealment or for furnishing inaccurate particulars as the relevant portions in the notice have been crossed out. Similarly, the assessment order dated 30.12.2011 passed u/s 143(3) / 153A of the Act also mentions initiation of penalty proceedings u/s 271(1)(c) of the Act but does not record whether the penalty proceedings are being initiated for furnishing inaccurate particulars of income or for concealing particulars of income. Similarly, the penalty order dated 28.6.2012 passed u/s 271(1)(c) of the Act mentions that the assessee has concealed the particulars of its income or furnished inaccurate particulars of income and does not specify whether the penalty is being imposed for concealment or for fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 274 of the Act should specifically state the grounds mentioned in section 271(1)(c) , i.e. whether it is for concealment of income or for furnishing of inaccurate particulars of income; (ii) Sending printed form where all the ground mentioned in section 271 are mentioned would not satisfy requirement of law; (iii) The assessee should know the grounds which he has to meet specifically. Otherwise principle of natural justice is offended. On the basis of such proceedings, no penalty could be imposed to the assessee. 6. Therefore, on the facts of the present case and respectfully following the decision of Hon ble Karnataka High Court in the case of Commissioner of Income Tax Another vs. Manjunatha Cotton Ginning Factory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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