9911796707
TMI Blog2017 (4) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee a company filed its return of income on 30th September 2011, for the impugned assessment year, declaring loss of Rs. 2,49,493, under the normal provisions. In the course of assessment proceedings, on the basis of AIR information available on record, the Assessing Officer finding mismatch in the interest received on fixed deposit as per books of account and as per Form-26AS called upon the assessee to reconcile the same. In response, it was submitted by the assessee that due to over sight the assessee has offered interest income on fixed deposit at Rs. 18,90,833, as against actual interest received of Rs. 24,83,019. It was submitted by the assessee that the aforesaid figure of Rs. 18,90,833 was considered on the basis of audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the assessee though, was having a number of fixed deposit in different banks, however, he has offered to tax interest received from all fixed deposits except one. He submitted, the lapse in offering the interest earned on fixed deposit was due to oversight on the part of the accountant because of the fact that though assessee's accounts are subject to tax audit as well as statutory audit, however, the mistake in not offering the interest income on fixed deposit was not pointed out by either of the auditors. Therefore, he submitted, it is a genuine mistake due to oversight and once it came to the notice of the assessee the income was offered to tax. The learned Authorised Representative submitted, the same is the case with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he scrutiny assessment proceedings the imposition of penalty under section 271(1)(c) is justified. 6. We have considered the submissions of the parties and perused the material available on record. Undisputedly, in the return of income assessee has failed to offer interest on fixed deposit amounting to Rs. 5,92,186 and loss claimed on account of fixed asset written-off amounting to Rs. 1,82,242. It is also a fact on record that in the course of assessment proceedings, the assessee accepted the taxability of these items of income and offered them to tax. The assessee has explained that non-disclosure of aforesaid two items of income is due to oversight and due to the fact that neither in the tax audit nor in the statutory audit such omissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for both. The Assessing Officer has simply initiated the proceedings for penalty under section 271(1)(c) without mentioning the offence committed by the assessee with reference to the provisions contained under section 271(1)(c). Further, on a reference to the notice issued under section 274 r/w section 271, which is in a standard printed format, a copy of which is placed at Page-17 of the paper book, we have found that the Assessing Officer has not specified which limb of the provision contained under section 271(1)(c) is attracted to the assessee. The Hon'ble Supreme Court in Dilip N. Shroff v/s JCIT, [2007] 291 ITR 519 (SC), has observed that while issuing the notice under section 274 r/w section 271, in the standard format, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty proceedings has been initiated. In the present case, neither the assessment order nor the notice issued under section 274 indicate the exact charge on the basis of which the Assessing Officer intends to impose penalty under section 271(1)(c). Therefore, viewed in the light of the principles laid down in the judicial precedents discussed herein above, we are of the opinion that the Assessing Officer having failed to record his satisfaction while initiating proceedings for imposition of penalty under section 271(1)(c) as to which limb of the provisions of section 271(1)(c) is attracted, the order imposing penalty is invalid. In view of the aforesaid, we hold that the imposition of penalty u/s 271(1)(c) in the present case is not ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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