TMI Blog2021 (3) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... Life Insurance Company Ltd. [ 2019 (8) TMI 409 - DELHI HIGH COURT] we are of the considered view that when the notice issued by the AO is bad in law being vague and ambiguous having not specified under which limb of section 271(1)(c) of the Act the same has been issued, the penalty proceedings initiated u/s 271(1)(c) are not sustainable. Initiating penalty on the basis of invalid satisfaction and on the basis of vague and ambiguous notice issued u/s 271(1)(c) read with section 274 is not sustainable in the eyes of law, hence liable to be deleted. Accordingly, question framed is answered in the negative and penalty levied by the AO and sustained by the ld.CIT (A) is ordered to be deleted - ITA No.6436 /Del./2017 - - - Dated:- 3-3-2021 - Shri Anil Chaturvedi, Accountant Member And Shri Kuldip Singh, Judicial Member For the Assessee : Shri Ravi Sharma, Advocate For the Revenue : Shri Sampoorn Anand Seth, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Appellant, M/s. FCI Asia Pte Ltd. (hereinafter referred to as the assessee ) by filing the present appeal sought to set aside the impugned order dated 17.07.2017 passed by the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as never a subject matter of the quantum appeal before the Ld. CIT(A). 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : On the basis of assessment order framed under section 143(3)/144C of the Act at an income of ₹ 5,75,90,635/- by making an addition of ₹ 1,47,39,918/- on account of interest income chargeable to the taxable income of the assessee and by making addition of ₹ 3,92,86,277/- on account of royalty/fee for technical services, penalty proceedings were initiated under section 271(1)(c) of the Act. Declining the contentions raised by the assessee, AO levied the penalty of ₹ 22,10,988/- @ 100% of the tax sought to be evaded. 3. Assessee carried the matter before the ld. CIT (A) by way of filing an appeal who has confirmed the penalty by dismissing the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Ld. AR for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efund to ₹ 46,67,339/- as against earlier claim of refund of ₹ 63,43,661/-. It is also not in dispute that since the return of income was filed by the assessee beyond the statutory deadline, it had no opportunity to revise the same. It is also not in dispute that letter dated 30.06.2011 was written by the assessee to the AO prior to the scrutiny notice dated 29.08.2011 issued u/s 143 (2) of the Act. It is also not in dispute that penalty has been levied by the AO u/s 271(1)(c) on account of concealment of income and furnishing of inaccurate particulars of qua interest income. 9. When we examine the assessment order passed by the AO it is apparently clear that in para 12 of the assessment order, AO has recorded his satisfaction to initiate the penalty proceedings for furnishing inaccurate particulars of income by not offering the receipts as fee for technical services by filing the return of income which is extracted for ready perusal as under :- 12. As the assessee has furnished inaccurate particulars of income by not offering the receipts as FTS while filing the return of income, therefore, I consider it a fit case for initiation of penalty proceedings u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... You are hereby requested to appear before me at 11.45 AM/PM on 21.02.2012 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorized representatives you may show cause in writing on or before the said date which will be considers before any such order is made under section 271. Sd/- Assessing Officer, Asstt. Director of Income Tax, Circle 1(2), Room No.410, (Intl. Taxation), Drumshape Bldg. New Delhi. 13. Bare perusal of the notice issued u/s 274 read with section 271(1)(c) of the Act, extracted above, in order to initiate the penalty proceedings against the assessee goes to prove that the AO himself was not aware / sure as to whether he is issuing notice to initiate the penalty proceedings either for concealment of particulars of income or furnishing of inaccurate particulars of such income by the assessee rather issued vague and ambiguous notice by incorporating both the limbs of section 271(1)(c). When the charge is to be framed against any person so as to move the penal provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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