2021 (10) TMI 421

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..... r of M/s Sulliakars Rubber Agencies carrying on the business of wholesale business in raw rubbers. The assessee had filed his return of income for the assessment years in question. The Assessing Officer has issued an order under 143 (3) read with 254 of the Act and made additions. 3. The Assessing Officer also initiated penalty proceedings u/s 271 (1) (c) of the Act against which the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), Mangaluru. The appellate authority dismissed the appeal confirming the order of penalty. Aggrieved by the same, the assessee has preferred an appeal before the Appellate Tribunal which came to be dismissed by the order dated 17.10.2016. Hence, this appeal by the assessee. 4. Learned .....

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..... order of the Appellate Tribunal impugned, contending that the Assessing Officer has ticked a portion which was relevant and the same has been rightly considered by the Tribunal while rejecting the claim of the assessee. 7. Adverting to the arguments of the learned counsel appearing for the parties, we have carefully examined the notices issued by the Assessing Officer (Annexures-D and D1) to initiate proceedings under Section 274 read with 271 of the said Act of 1961. The notice issued in the said printed format, though specifies "delete the inappropriate words and paragraphs," the tick mark is found with respect to the clause "have concealed the particulars of your income". The next limb of the said clause remains undeleted as the penalty .....

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..... ending a printed form where all the ground mentioned in Section 271 are mentioned would not satisfy requirement of law when the consequences of the assessee not rebutting the initial presumption is serious in nature and he had to pay penalty from 100% to 300% of the tax liability. As the said provisions have to be held to be strictly construed, notice issued under Section 274 should satisfy the grounds which he has to meet specifically. Otherwise, principles of natural justice is offended if the show cause notice is vague. On the basis of such proceedings, no penalty could be imposed on the assessee. 60. Clause (c) deals with two specific offences, that is to say, concealing particulars of income or furnishing though the initiation of pen .....

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