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2017 (11) TMI 1765 - ITAT PUNELevy of penalty u/s. 271(1)(c) - initiation of penalty on one charge i.e. "concealment of income‟ and levied penalty on another charge i.e. "furnishing of inaccurate particulars of income" - Held that:- Bare perusal of recording of satisfaction, notice issued u/s. 274 r.w.s. 271(1)(c) and the order levying penalty, it is unambiguously clear that the Assessing Officer was not clear in his mind qua the charge under which penalty is to be levied. The Assessing Officer initiated penalty on one charge i.e. "concealment of income‟ and levied penalty on another charge i.e. "furnishing of inaccurate particulars of income". Commissioner of Income Tax Vs. Shri Samson Perinchery (2017 (1) TMI 1292 - BOMBAY HIGH COURT) has held that the order imposing penalty has to be made only on the ground for which the penalty proceedings have been initiated. It cannot be on a ground of which the assessee has no notice. The Pune Benches of the Tribunal have been consistently holding that recording of satisfaction on one ground and levying penalty on another would make the penalty order bad in law. - Decided in favour of assessee. Wrongful claim of bogus expenditure - A.Y. 2006-07 - Held that:- Where the assessee has completely withheld information about the income generated and there is no mention of such income either in the books or the return of income, such suppression of income would fall within the expression „concealment of income‟. It is not so in the present case. The assessee has made wrongful claim of bogus expenditure, therefore, it would be a case of furnishing of inaccurate particulars of income. Thus, in our considered view the Assessing Officer while recording satisfaction for levying penalty has erred in invoking wrong limb of section 271(1)(c). Consequently, the penalty has been levied under wrong charge for concealment of income. It is a case of furnishing of inaccurate particulars of income and not concealment of income. Since, the penalty u/s. 271(1)(c) has been levied on wrong charge - Appeal of assessee is allowed.
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