TMI Blog2018 (4) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicates non application of mind on the part of the AO while issuing the penalty notice. Penalty proceedings initiated by the Assessing Officer are bad in law and accordingly the penalty so initiated is directed to be deleted and the order of the learned CIT (A) is set aside. - Decided in favour of assessee. - ITA No. 4863/Del /2014 - - - Dated:- 30-1-2018 - Shri B.P. Jain, Accountant Member and Shri Sudhanshu Srivastava, Judicial Member Appellant by : S/Shri Salil Agarwal, Shailesh Gupta, Adv. Respondent by : Shri Amit Jain, Sr. DR ORDER PER SUDHANSHU SRIVASTAVA, J.M. This appeal has been preferred by the assessee and it challenges the confirmation of imposition of penalty of ₹ 5,35,030/- imposed u/s 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y proceedings have been validly initiated in the notice u/s 274 r.w.s. 271 of the Act. 4. We have heard the rival contentions and perused the material on record. It is evident from the notice u/s 274 r.w.s. 271 of the Act dated 29.11.2010 for the impugned year that the Assessing Officer has not specifically specified as to under which limb of Section 271(l)(c) of the Act, the penalty proceedings had been initiated by him, i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Hon ble High Court of Karnataka in the case of CIT vs. Manjunatha Cotton Ginning Factory, reported in 359 ITR 565 (Kar)has held as under: (p) Notice under section 274 of the Act should specifically state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the satisfaction for the same ? (3) Whether on the facts and in the circumstances of the case, the Tribunal was justified in deciding the appeals against the Revenue on the basis of notice issued under Section 274 without taking into consideration the assessment order when the assessing officer has specified that the 'assessee has concealed particulars of income? 3. The Tribunal has allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under Section 274 read with Section 271(l)(c) of the Income Tax Act. 1961 for short 'the Act') to be bad in law as it did not specify which limb of Section 271 (l)(c) of the Act: the penalty proceedings had been initiated i.e., whether for conc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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