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TMI Blog2024 (7) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... filed this appeal challenging the order dated 23-01-2024 passed by Ld CIT(A), NFAC, Delhi and it relates the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter "the Act") for AY 2014-15. 2. The assessee has raised the following grounds: - 1. On the facts and circumstances of the appellant's case and in law, the Ld. CIT(A) erred in confirming the action of the Ld. AO in issui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... real-estate during the year. The case was selected for scrutiny and assessment u/s 143(3) of the Act was made at nil income after disallowance claim of various allowances/expenses to the extent of Rs. 61,76,840/-. Penalty proceedings u/s 271(1)(c) of the Act were also initiated on the ground that the assessee had inflated its expenses and hence furnished inaccurate particulars of income. Vide ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al submissions. Even though, the Assessing Officer ("AO") had clearly mentioned in the assessment order that the assessee had furnished inaccurate particulars of income but at the time of issuing he did not strike off the irrelevant clause. As such, the notice issued by the Ld. AO was vague. There are various decisions on this issue on the decision of the Full bench of the Hon'ble Jurisdictional H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis for the penalty proceedings, but they are not composite proceedings to draw strength from each other. Nor can each cure the other's defect. A penalty proceeding is a corollary, nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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