TMI Blog2019 (4) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... has relied on the decision of the Division Bench of this Court rendered in the case of COMMISSIONER OF INCOME TAX -VS- MANJUNATHA COTTON AND GINNING FACTORY (2013 (7) TMI 620 - KARNATAKA HIGH COURT) - Decided in favour of assessee. - ITA No. 6447/Del/2018 - - - Dated:- 5-4-2019 - Shri N.S. Saini, Accountant Member For the Assessee : Sh. Sunil Kumar Gupta, CA For the Revenue : Shri S.L. Anuragi, Sr. DR ORDER This is an appeal filed by the Assessee against the order of CIT(Appeals) Karnal dated 23.07.2018. 2. The sole issue involved in the appeal is that the CIT(A) erred in confirming the levy of penalty u/s 271(1)(c ) of the Income Tax Act, 1961 of ₹ 1,05,973/-. 3. The brief facts of the case are that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on law of penalty. 5. He submitted that in the case of the assessee, the Assessing Officer in the penalty notice has held that the assessee has concealed the particulars of his income and has also furnished inaccurate particulars thereof for levy penalty u/s 271(1)(c) of the Act. Therefore, in view of the decision of the Hon'ble Karnataka High Court in the case of VeerbhadrappaSangappa Co. Ors. (Supra) the penalty levied is liable to be deleted. 6. The Departmental Representative could not controvert the above submission of ld Authorised Representative of the assessee. 7. We have heard the rival submissions perused the orders of lower authorities and materials available on record. We find that the facts in the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 271 (1 B) with retrospective effect and by virtue of the amendment, the assessing officer has initiated the penalty by properly recording 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(1)(c) of the Income Tax Act, 1961 (for short 'the Act') to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culars of such income. It is also a well-accepted proposition that the aforesaid two limbs of section 271(1)(c) of the Act carry different meanings. Therefore, it was imperative for the Assessing Officer to strike- off the irrelevant limb so as to make the assessee aware as to what is the charge made against him so that he can respond accordingly. The Hon'ble Karnataka High Court in the case of Manjunatha Cotton Ginning Factory, 359 ITR 565 (Kar) observed that the levy of penalty has to be clear as to the limb under which it is being levied. As per Hon'bleHigh Court, where the Assessing Officer proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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