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TMI Blog2017 (2) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... concealment of particulars of income or furnishing of inaccurate particulars. No proper or reasonable opportunity was given by the AO to meet the charge. The charge itself was stated to be nebulously. The penalty notice contains both ingredients of penalty without satisfying the particular contravention for which the proceedings have been initiated. In such circumstances, the penalty as levied by the AO in terms of his order dated 30.9.2013 in ab initio invalid, illegal and must be quashed. - Decided in favour of assessee - ITA No. 5234/Del/2014 - - - Dated:- 25-11-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. Raj Kumar Gupta, CA For The Department : Sh. Anil Kumar Sharma, Sr. DR ORDER This appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein he offered long term capital gains of ₹ 19,18,379/- which was earlier claimed as deduction u/s. 54F of the Act. In view of the facts of the case, penalty proceedings u/s. 271(1)(c) of the Act were also initiated for concealment / furnishing inaccurate particulars of income in the assessment order passed under section 153A/143(3) of the Act on 25.3.2013. Accordingly, notice u/s. 274 of the Act r.w.s. 271(1)(c) of the Act was issued to the assessee on 25.3.2013 and thereafter, on 26.8.2013 requiring him to explain as to why penalty u/s. 271(1) should not be imposed on him. In response to the said notice, the assessee replied vide his letter dated 3.9.2013. After examining the reply of the assessee, the AO held that assessee s submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income or furnishing of inaccurate particulars, the eventual penalty order is for concealment of particulars of income where the penalty proceedings were initiated for furnishing of inaccurate particulars, if finally culminated into an order for concealment of particulars of income. In other words, no proper or reasonable opportunity was given by the AO to meet the charge. The charge itself was stated to be nebulously. He further stated that it is a settled law that where the show cause notice of penalty is vague or ambiguous, no penalty is sustainable. The penalty notice contains both ingredients of penalty without satisfying the particular contravention for which the proceedings have been initiated. In such circumstances, the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, I am of the view that the AO vide his penalty order dated 30.9.2013 vide para no. 9 has stated that the assessee has concealed / furnished inaccurate particulars of this income to the extent of ₹ 19,18,379/- and imposed minimum penalty @100% was imposed. I find that in the penalty order it nowhere mentions that it is for concealment of income or for furnishing in accurate particulars of income. I further note that penalty notice dated 25.3.2013 mentions both the alleged charges without clearly specifying as to whether it is for concealment or for inaccurate particulars. I note that in the next penalty notice dated 26.8.2013 is also on the similar lines as per notice dated 25.3.2013. Therefore, the notice for penalty was ambig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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