TMI Blog2017 (5) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms Usha N. Shrote, Sr. D.R. ORDER PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : This appeal has been preferred by the assessee against the order of the Commissioner of Income Tax(Appeals)-II, Rajkot, dated 28/12/2016 for the Assessment Year (AY) 2011-12 for imposing penalty. 2. Assessee has taken the following Grounds of appeal: The learned CIT(A) has erred in law and facts in confirming penalty u/s. 271(1)(c) of ₹ 10,110/-. The penalty needs deletion. 3. The relevant facts as culled out from the materials on record are as under:- During the course of scrutiny of assessment proceeding for A.Y. 2011-12, the assessee was asked to furnish the details of all the bank accounts and copies of Bank statements. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how cause notices dated 28/05/2014 during the time of penalty proceedings, amount of ₹ 98,138/- was deemed to represent the income, in respect of which the particulars had been concealed. The AO concealed that the assessee has not explained the additions at this stage and has thus failed to offer any explanation; therefore, clause (A) of explanation of the section 271(1) was clearly attracted. 5. In view of the reason mentioned above and in assessment order, the learned AO has levied of penalty of ₹ 30,327/- under section 271(1)(c) for concealment of income. 6. Against the said order assessee preferred appeal before the learned CIT(A) who had dismissed the appeal of the assessee. 7. Now assessee s appeal has come before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the learned CIT(A). We have heard the rival contentions and perused the material on record. We have perused the above referred notice dated 31/02/2013 and noticed relevant clause appearing as under: have concealed the particulars of your income or furnished inaccurate particulars of such income We observed that the notice does not specify whether it is issued for concealing the particulars of income or furnishing inaccurate particulars of such income. We have further noticed that the co-ordinate Bench of the ITAT has decided the identical issue in the case of Shree Khodsal Steel Ltd. vs. ACIT, Rajkot vide ITA No.738/Rjt/2014 by observing as under: 10.1 From the perusal of the above findings it is crystal clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of another offence or finding him guilty for either the one or the other 4 ITA No. 41/RJT/2015 Shri K.C. Varghese cannot be sustained in law. It is needless to point out satisfaction of the existence of the grounds mentioned in Section 271(1)(c) when it is a sine qua non for initiation or proceedings, the penalty proceedings should be confined only to those grounds and the said grounds have to be specifically stated so that the assessee would have the opportunity to meet those grounds. After, he places his version and tries to substantiate his claim, if at all, penalty is to be imposed, it should be imposed only on the grounds on which he is called upon to answer. It is not open to the authority, at the time of imposing penalty to impose pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsider it a fit case for levy of penalty under Section 271(1)(c) . 6. On a careful reading of the decisions relied upon by the assessee, it is, therefore, clear that drawing up penalty proceedings for one offence and finding the assessee guilty of another offence or finding him guilty of either one or other cannot be sustained in law. In this case also the assessment order reads that penalty proceedings were initiated for furnishing inaccurate particulars of income, whereas the penalty order shows that the assessee was guilty of concealment of particulars of income/furnishing inaccurate particulars of income. According to the binding precedents referred to above, such a course is bad in law and cannot be sustained. We, therefore, proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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