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TMI Blog2019 (12) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in this appeal is against the imposition of penalty levied u/s.271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as "the Act‟) in respect of income declared during the course of survey. 3. The brief facts in this case are that the assessee is a partnership firm and is involved in the business of civil contract. In this case, the return was E-filed showing total income of Rs. 21,38,850/-. Subsequently a survey u/s.133A of the Act was conducted on 29.01.2015. In the course of survey, the partner of the assessee firm disclosed an amount of Rs. 20 Lakhs as additional income relevant for the assessment year 2013-14. The assessee in the return filed after survey operation not only included the amount of Rs. 20 lakhs a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order as well as the penalty order highlighting the above legal deficiencies. In the assessment order, vide Para 4.1, the Assessing Officer recorded his satisfaction by mentioning both the limbs of section 271(1)(c) of the Act for initiation of penalty proceedings which reads as under: "4.1.......... Since the assessee has furnished inaccurate particulars of income and concealed particulars of income, penalty proceedings u/s.271(1)(c) r.w. Explanation 1 thereto is initiated separately on amount of Rs. 40,74,643/-." 4.1 The Ld. AR for the assessee further submitted that the Assessing Officer vide Para 12.5 in the penalty order dated 23.08.2016 has imposed the penalty u/s.271(1)(c) of the Act by observing as under: "12.5. With evo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r initiating the penalty proceedings u/s.271(1)(c) of the Act is relevant for extraction. Therefore, the same is reproduced as under: "10............ Issued penalty notice u/s.274 r.w.s u/s.271(1) (c) r.w. explanation 1 for furnishing inaccurate particulars of income/concealing particulars of income......" 8. We have also perused the penalty order dated 28.09.2016 and find the satisfaction recorded by the Assessing Officer vide Para-11 in the penalty order for levying the penalty u/s.271(1)(c) of the Act is relevant for extraction. The said satisfaction reads as under: "11. In view of the discussion made in the preceding paragraphs, it is held that the income of Rs. 27,01,875/- represents the income in respect of which particulars hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich 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 of penalty proceedings would be on both the limbs i.e. "for furnishing inaccurate particulars of income" or "concealment of income" or without any limbs of Section 271(1)(c) of the Act. The Assessing Officer has to mention specific limbs while imposing penalty u/s.271(1)(c) of the Act. 9. 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 ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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