9911796707
TMI Blog2018 (5) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act by the Assessing Officer. It is urged by the petitioner that pursuant to the notice issued, all the requisite details were furnished based on which assessment was completed. However, while concluding the assessment, the respondent initiated penalty proceedings under 271(1)(c) of the Act. A notice in this regard was issued in the prescribed pro-forma on 19.12.2011. In the notice it was stated as under: "*have concealed the particulars of your income or furnished inaccurate particulars of such income. You are hereby requested to appear before me at 10-30 A.M. on 09.01.2012 and show cause why an order imposing a penalty on you should not be made u/s 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed on the judgment in the case of S.Chandrashekar Vs. Assistant Commissioner of Income Tax reported in (2017) 396 ITR 0538 (Karn). 5. We have heard the learned counsel for the appellant, Ms.Sheetal and learned counsel for the revenue Mr.Aravind. 6. This Court has admitted the appeal to consider the following substantial questions of law: (1) Whether Tribunal is justified in confirming penalty when there is neither concealment or inaccurate particulars of income to justify levy of penalty under Section 271(1)(c) of the Act? (2) Whether notice issued under Section 271(1)(c) in the printed form without proceedings specifically mentioning whether the proceedings are initiated on the ground of concealment of income or on account of fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at page 19 has held that concealment of income and furnishing inaccurate particulars of income carry different connotations. The Gujrat High Court in the case of MANU ENGINEERING reported in 122 ITR 306 and the Delhi High Court in the case of VIRGO MARKETING reported in 171 Taxmn 156, 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 proforma without striking of the relevant clauses will lead to an inference as to non-application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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