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TMI Blog2025 (5) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... f, therefore, there is no satisfaction in the mind of the A.O while issuing the notice in which he wants to proceed against the assessee in the penalty proceedings. For the sake of completeness, the said notice u/s. 274 r.w.s. 271(1)(c) of the Act is extracted and made part of this order, as follows: 3. Per contra, the Ld. CIT-DR principally supported the findings of the revenue authorities, but at the same time conceded that the notice u/s. 274 r.w.s. 271(1)(c) of the Act is vague and ambiguous and has not spelt out the appropriate limb, in which the penalty has to be levied on the assessee. 4. In this regard, it is observed that the Hon'ble High Court of Delhi in the case of Pr. CIT Vs. Gragerious Projects (P) Ltd. (2024) 169 taxmann.com 291 (Del.) had upheld the findings of the Tribunal on two counts, viz. (i) it was held that where the charges are either concealment of particulars of income or furnishing of inaccurate particulars thereof, the revenue must specify as to which one of two limb is sought to be pressed into service and therefore, the revenue is not permitted to club both the charges; and (ii) it was further held that in absence of specific charge for initiation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s notice suffers from the vice of vagueness. 182. More particularly, a penal provision, even with civil consequences, must be construed strictly. And ambiguity, if any, must be resolved in the affected assessee's favour. 183. Therefore, we answer the first question to the effect that Goa Dourado Promotions and other cases have adopted an approach more in consonance with the statutory scheme. That means we must hold that Kaushalya does not lay down the correct proposition of law....." 7. Thus, we are satisfied that the question now proposed, stand answered against the Revenue, inter alia, by the Full Bench of this Court in the case of Mohd. Farhan (supra). 8. For the above reasons, we decline to admit this appeal on the questions proposed." 6. Further the Hon'ble High Court of Delhi in the case of Pr. CIT Vs. Blackrock Securities (P) Ltd. (2023) 157 taxmann.com 564 (Del.) has held and observed as follows: "7. We may, for convenience, quote from one of the judgments i.e., Unitech Reliable Projects Pvt. Ltd., which in our opinion, provides the rationale as to why it is necessary to indicate to the assessee the specific limb of Section 271(1)(c) of the Act under which pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee 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(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the Assessee, has relied upon the decision of the Division Bench of this Court rendered In the case of Commissioner or Income- tax v. Manjunatha Cotton and Ginning Factory [2013] 359 ITR 565. 4. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises, in this appeal for determination by this Court, the appeal is accordingly dismissed." [Emphasis is ours] 17. The Supreme Court in the aforesaid case, in fact, confirmed the view of the Karnataka High Court in said matter, which in turn had relied upon the judgment of its own Court in Manjunatha Cotton & Ginning Factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to apply his mind to the material and indicate, clearly, to the assessee what is being put against him. In other words, which limb of section 271(1)(c) of the Act is attracted in the given facts and circumstances of the case. 9. It is our view, that this clarity would be necessary as the pecuniary burden that the assessee may be mulct with could vary, depending on the infraction committed by him. 10. Thus, in the given case, where concealment has taken place, a heavier burden may be imposed, as compared to till situation where the assessee furnishes inaccurate particulars. We may also make it clear that there may be circumstance where both limbs are attracted. If that is the situation, the notice should allude to this aspect. 11. Given the aforesaid circumstances, we are of the view that no substantial question of law arises for our consideration. 12. Accordingly, the appeal is closed." 7. In our considered view, the legal parameters that has been set forth by the judicial pronouncements as afore-stated is that through the penalty proceedings initiated against the assessee, he is put to pecuniary burden, therefore, it is essential from the aspect of natural justice that h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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