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TMI Blog2017 (5) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee should know the grounds which he has to meet specifically, otherwise, the principles of natural justice are offended, else no penalty can be imposed on the assessee. It is, thus, settled that the charge as to whether the assessee is guilty of furnishing inaccurate particulars of income, or of concealment thereof, has to be specific, otherwise no penalty is leviable or sustainable u/s 271(1)(c) of the Act. - Decided in favour of assessee. - I.T.A No. 53/Agra/2015, I.T.A No. 54/Agra/2015 - - - Dated:- 19-5-2017 - Shri A. D. Jain, Judicial Member Assessee by Shri P.N. Agarwal, AR. Revenue by Shri Waseem Arshad, Sr. DR. ORDER This is assessee s appeal for assessment year 2006-07, against the order dated 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 011, the Tribunal restored the order of the AO setting aside the ld. CIT(A) s order. The AO, by way of the order dated 13.10.2011, levied the concealment penalty of ₹ 3,72,800/- on the assessee. By virtue of the impugned order, the ld. CIT(A) confirmed the penalty order. I.T.A No. 53 54/Agra/2015 3 3. Besides the regular grounds of appeal taken, the assessee has raised the following additional ground before this Bench: Because the Authority below have erred both on facts and in law in imposing penalty u/s 271(1)(c) without appreciating (sic- that) the notice u/s 274 read with section 271(1)(c) was bad in law as it did not specify whether the same was for concealment of particulars of income or furnishing inaccurate partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to alleged concealment of particulars of income by the assessee. ii) As per the notice u/s 274 r.w.s 271(1)(c) of the Act, the assessee appeared to have concealed the particulars of his income or had furnished inaccurate particulars of such income. iii) According to the penalty order, the assessee had filed wrong facts and had concealed his income, meaning thereby, that the assessee had furnished inaccurate particulars of his income and had concealed his income. 9. In para 4.1 of the impugned order, the ld. CIT(A) has held (page 9, 4th line from the top), that the penalty is very much levied for furnishing of inaccurate particulars of income. 10. In para 4.3 of his order, (page 11, para 9th line from the bottom), the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings and that the AO is not required to record his satisfaction in a particular manner, or to reduce it into writing. There is no denying this law as laid down by the Hon ble Supreme Court. However, whereas in the assessment order in the present case, the charge specified was concealment of income, the notice u/s 274 was issued for the assessee allegedly having either concealed the particulars of his income, or having furnished inaccurate particulars thereof. As per the penalty order, the assessee had furnished inaccurate particulars of income and had concealed his income. The ld. CIT(A) observed that the assessee had furnished inaccurate particulars of his income and had concealed his true and correct income. As to how MAK DATA P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in ITA No. 7/2010, vide order dated 24.05.2010 (DPB 54-60) is also not detrimental to the case of the assessee. In that case, it was held that if the assessee makes a claim which is not only incorrect in law, but is also wholly without any basis and the explanation furnished by him for making such a claim is not found to be bona fide, it would be difficult to say that he would still not be liable to penalty confirmed u/s 271(1)(c) of the Act. However, it has not been disputed in the present case that the claim made for eligible deduction under sections 54F and 54EC of the Act was bona fide. Actually, investments were made in the purchase of the residential plot and eligible capital gain bonds. The investments made were duly disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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