TMI Blog2023 (7) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... was triggered vis-a-vis the respondent/assessee. As indicated above, in a given case, both limbs may get attracted, but even in such situation the AO would need to set forth his prima facie, satisfaction in the penalty notice. The reason, perhaps, why the Legislature has provided for two circumstances in Section 271(1)(c) to our minds, emanates from the need to distinguish between the gravity and consequences which may accompany concealment of particulars of income, as against a case which involves furnishing inaccurate particulars. The quantum of penalty, that the AO may levy, would depend on which slot and/or limb of Section 271(1)(c) of the Act, the assessee s infraction falls in. No substantial of law. - HON'BLE MR JUSTICE RAJIV S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Appeals) or the Principal Commissioner or Commissioner in the course of any proceedings under this Act, is satisfied that any person (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, or 7.2 A plain reading of Section 271(1)(c) of the Act would show, that it adverts to two circumstances, in which penalty proceedings can be initiated against an assessee. The first circumstance concerns concealment of particulars of income, while the second circumstance relates to furnishing of inaccurate particulars. If one were to read the expression or conjunctively, it could lead to a third situation, where inaccurate particulars could lead to concealment of income. In case such circumstance arises in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the penalty notice has not been filed, the relevant part stands extracted in paragraph 9 of the impugned order. For the sake of convenience, the relevant part is extracted hereafter: have concealed the particulars of your income...furnished inaccurate particulars of income... 11. The Tribunal, after perusing the record and considering the submissions, observed as follows: 13. In the present appeal, the show-cause-notice dated 15.03.2013 which has been issued by the Assessing Officer under Section 274 read with Section 271(1)(c) of the Act reveals that Assessing Officer has not recorded any clear cut satisfaction as to whether the penalty under Section 271(1)(c) of the Act has been levied for concealment of income or for furnishing of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r minds, emanates from the need to distinguish between the gravity and consequences which may accompany concealment of particulars of income, as against a case which involves furnishing inaccurate particulars. The quantum of penalty, that the AO may levy, would depend on which slot and/or limb of Section 271(1)(c) of the Act, the assessee s infraction falls in. 17. Furthermore, having regard to the doctrine of stare decisis which impels courts not to disturb settled propositions or points of law, we are of the view, that the judgment of the coordinate bench of this Court rendered in Sahara India would have to be followed, as nothing has been brought on record by Mr Kumar, which would persuade us to deviate from the view taken by the coordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Kumar i.e., ECS Ltd. s case, the coordinate bench has not veered away from this proposition made the following observations: The net effect of the aforesaid judgment is that even when the Assessing Officer has not recorded his satisfaction in explicit terms, the assessment orders should indicate that the Assessing Officer had arrived at such a satisfaction. Though the assessment order need not reflect every item, vis., addition or disallowance, yet we have to find out that the order is couched in such a manner and the discussion herein leads towards the opinion of the Assessing Officer that the assessee had concealed the particulars of income or furnishing inaccurate particulars. This has to be discerned from the reading of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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