TMI Blog2023 (6) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... attracted. The reason we say so is, that apart from anything else, the pecuniary burden may vary, depending on the infraction(s) committed by the respondent/assessee. In a given case, where concealment has taken place, a heavier burden may be imposed, than in a situation where an assessee is involved in furnishing inaccurate particulars. Therefore, it is necessary for the AO to indicate, broadly, as to the provision/limb under which penalty proceedings are triggered against the assessee.Clearly, this has not happened in the instant case. As a matter of fact, even in the assessment order, whereby proceedings were triggered, there is no indication whatsoever, as to which limb of Section 271(1)(c) of the Act was triggered. Decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds Real Estate Project Expenses, as compared to the previous years claim issued a show-cause notice to the respondent/assessee. 9.2 It appears, that in response, the respondent/assessee filed a reply, wherein it, inter alia, stated that it was following the percentage completion method in the earlier years, whereby expenditure for ascertaining the revenue was based on expected estimates, and since the project was completed in the given AY, there was an enhancement in the expenses. 10. It appears, that the AO also flagged the fact, that the expenditure in the completion of project, which was claimed by the respondent/assessee as amounting to Rs. 78,40,58,041/- included a component, which according to the AO had yet not been incurred. This co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e penalty order passed by the AO. It is in this backdrop, that the respondent/assessee preferred a second appeal with the Tribunal. 14. The Tribunal, after noticing the backdrop which is set forth hereinabove, disposed of the appeal and set aside the penalty order, based on the defect which was noticed by it, insofar as the penalty proceedings were concerned. 15. According to the Tribunal, the notice dated 14.03.2015 issued under Section 274 read with Section 271(1)(c) of the Act did not specify, as to the limb under which penalty was sought to be imposed. In other words, the notice which was served on the respondent/assessee did not indicate, as to whether penalty was being levied on account of concealment of income, or for the reason that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 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 be bad in law as it did not specify which limb of Section 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordinate bench of this Court, of which one of us [i.e., Rajiv Shakdher, J.] was a party has reached the same conclusion in PCIT vs. Minu Bakshi 222 (7) TMI 1370-Delhi. 21. Penalty proceedings entail civil consequences for the assessee. The AO is required to apply his mind to the material particulars, and indicate clearly, as to what is being put against the respondent/assessee when triggering the penalty proceedings. 22. In case the AO concludes, that a case is made out under Section 271(1)(c) of the Act, he needs to indicate, clearly, as to which limb of the said provision is attracted. The reason we say so is, that apart from anything else, the pecuniary burden may vary, depending on the infraction(s) committed by the respondent/assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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