TMI Blog2019 (3) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... or indicate that both have been contravened while initiating penalty proceedings. It cannot be that the initiation would be only on one limb i.e. for furnishing inaccurate particulars of income while imposition of penalty on the other limb i.e. concealment of income. The sanctity in terms of natural justice with regard to this proposition is that the assessee under the scheme of welfare legislation which is embedded in the Income Tax Act, 1961 should get an opportunity to prepare himself for the defense as regards to the exact charge on which penalty is imposed upon him u/s. 271(1)(c). In the instant case, the charge is vague and therefore, levy of penalty is not warranted. Furthermore, the revised return filed by the assessee is in conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lary received from two concerns, failure to disclose interest amount of ₹ 8,121/- and to explain the source of cash deposits amounting to ₹ 32,50,000/-. 4. At the time of hearing the Ld. AR of the assessee at the very outset submitted that the notice issued u/s.274 r.w.s.271(1)(c) of the Act along with penalty order is vague as to the limb on which penalty u/s. 271(1)(c) of the Act is initiated. The Ld. AR contended that it is settled principle of law if the charge is not specific then the penalty u/s.271(1)(c) of the Act cannot be levied. That in support of his contentions, the Ld. AR of the assessee relied on the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Samson Perinchery in ITA No.1154 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposition that comes out and which is binding in nature is that the Assessing Officer should be clear as to which of the two limbs under which penalty is imposable, has been contravened or indicate that both have been contravened while initiating penalty proceedings. It cannot be that the initiation would be only on one limb i.e. for furnishing inaccurate particulars of income while imposition of penalty on the other limb i.e. concealment of income. 7. The sanctity in terms of natural justice with regard to this proposition is that the assessee under the scheme of welfare legislation which is embedded in the Income Tax Act, 1961 should get an opportunity to prepare himself for the defense as regards to the exact charge on which penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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