TMI Blog2022 (9) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer is satisfied that any person has concealed the particulars of his income or furnish inaccurate particulars of such income. The section talks of only two nature of default ; First where assessee has concealed the particulars of his income and second where the assessee has furnished inaccurate particulars of such income. DR trying to defend the act of Ld. AO in carving out the third nature of default being a composite default of nature, concealment of income and for furnishing of inaccurate particulars. If the intention of Ld. AO was of finding the assessee guilty of concealment of income and also for furnishing of inaccurate particulars then that would be a case of proceedings for two different defaults but for which a commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty order u/s 271(1)(c) r.w.s. 274 of the Act, was passed. However, in appeal the Ld. CIT(A) had deleted the same. Primarily for the reason that the AO has failed to specify the appropriate limb of charges by striking off the inappropriate limb, either in the assessment order while initiating penalty u/s 271(1)(c), or while issuing the notice of penalty u/s 274 r.w.s. 271(1)(c) or even while concluding the imposition of penalty u/s 271(1)(c). Ld. CIT(A) followed the judgment of Hon ble Supreme Court of India in CIT vs. SSA s Emerald Meadows [2016] 73 taxman.com 248(SC). He also followed the judgment of Hon ble Jurisdictional High Court in Pr. CIT Versus Sahara India Life Insurance Co ITA no 475/2019 vide order dated 2/8/2019 . 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the ld. AO had initiated the penalty proceedings not merely for concealment of income or for furnishing of inaccurate particulars but as a whole finding concealment of income and for furnishing inaccurate particulars. Therefore, there was no question of striking off one of the limb. He relied judgment of Hon ble Madras High Court in M/s. Sundaram Finance Limited vs. ACIT (2018) 93 taxman.com 250 (Madras) and relied the para no. 16 of the judgment to submit that in case the assessee, have concealed particulars of income and furnished inaccurate particulars of income then the notice is not vitiated if it did not specifically state the grounds mentioned in Section 271(1)(c) of the Act. He submitted that this judgment is consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it is not a case where the Assessing officer had issued the notice in consonance with its findings mentioned in para no. 11, 12 and 13 of the order where he had concluded that penalty proceedings u/s 271(1)(c) is initiated for concealment of income and for furnishing of inaccurate particulars. 8. The bench is of considered opinion that Section 271(1)(c) of the Act talks of penalty proceedings in cases where assessing officer is satisfied that any person has concealed the particulars of his income or furnish inaccurate particulars of such income. The section talks of only two nature of default ; First where assessee has concealed the particulars of his income and second where the assessee has furnished inaccurate particulars of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court of India in SLP No. 11485 of 2016 by order dated 5th August, 2016. 22. On this issue again this Court is unable to find any error having been committed by the ITAT. No substantial question of law arises. 11. The co-ordinate bench at Delhi in Ram Singh Saini vs. ITO (supra), in which one of us, the Hon ble Accountant Member, was on coram had dealt with the argument of Revenue for reliance on Sundaram Finance Ltd. Case (supra) and held :- The reliance of the Ld. DR in respect of Sunderam Finance Ltd. (supra) cannot be taken into account in toto in the present case as the jurisdictional High Court in case of Sahara India Life Insurance Co. Ltd. (supra) has clearly set out the necessity of the actual provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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