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TMI Blog2018 (12) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... ed inaccurate particulars thereof. Thus, he is not specific as to whether the penalty is levied for concealment of income or for furnishing inaccurate particulars of income. - Decided in favour of assessee. - ITA No.-3727/Del/2017 - - - Dated:- 17-12-2018 - SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The Assessee : Shri Pradip Dinodia, CA, Sh. R.K. Kapoor, CA For The Revenue : Shri Shailesh Kumar, Sr. DR ORDER PER N.S.SAINI, ACCOUNTANT MEMBER : This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Appeals)-9, New Delhi dated 06.03.2017 for assessment year 2005-06. 2. The sole issue involved in this appeal is that the CIT(A) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated as under :- The assessee has concealed the particulars of his income and has also furnished inaccurate particulars thereof. He submitted that the Hon ble Karnataka High Court in the case of VeerbhadrappaSangappa Co. Others (2013) 359 ITR 565 (Karn) has held that the show cause notice u/s 274 of the Act does not specify as to the exact charge viz., whether the charge is that the Assessee has furnished inaccurate particulars of income or concealed particulars of income by striking out the irrelevant portion of printed show cause notice, then the imposition of penalty on the basis of such invalid show cause notice cannot be sustained. The above ruling has also been relied by Kolkata ITAT in case of Sufaprasanna B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a is reproduced below :- 2. This appeal has been filed raising the following substantial questions of law: ( 1) Whether, omission if assessing officer to explicitly mention that penalty proceedings are being initiated for furnishing oj inaccurate particulars or that for concealment of income makes the penalty order liable for cancellation even when it has been proved beyond reasonable doubt that the assessee had concealed income in the facts and circumstances of the case? ( 2 Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in. holding that the penalty notice under Section 274 r.w.s. 271(1)(c) is had in law and. invalid inspite the amendment of Section 271(1 B) with retrospective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer initiated the penalty proceedings by issuing the notice u/s 274/271(1)(c) of the Act without specifying whether the assessee has concealed ''particulars of income or assessee has furnished inaccurate particulars of income , so as to provide adequate opportunity to the assessee to explain the show cause notice. Rather notice in this case has been issued in a stereotyped manner without applying any mind which is bad in law, hence is not a valid notice sufficient to impose penalty u/s 271(1)(c) of the Act. 11. The penalty provisions of section 27l(1)(c) of the Act are attracted where the assessee has concealed the particulars of income or furnished inaccurate particulars of such income. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of the aforesaid legal position and, having regard to the manner in which the Assessing Officer has issued notice under section 274 r.w.s. 271(1)(c) of the Act dated 15.1.2014 without striking off the irrelevant words, the penalty proceedings show anon-application of mind by the Assessing Officer and is, thus, unsustainable. 12. The facts of the present appeal are identical to the facts of the case before the Hon ble Karnataka High Court in the case of SSA s. Emarld Meadows (supra). In the instant case the AO while levying penalty u/s 271(1)(c) has observed that the assessee has concealed the particulars of his income and has also furnished inaccurate particulars thereof. Thus, he is not specific as to whether the penalty is levied fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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