2019 (1) TMI 1200

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..... In this notice the AO has mentioned both the limbs of section 271(1)(c) of the Act that assessee have concealed the particulars of the income or furnished inaccurate particulars of such income. AO has not specified in the notice as to under which limb of section 271(1)(c) of the Act a show cause notice has been issued against the assessee for levy of the penalty. See COMMISSIONER OF INCOME TAX & ANR. VERSUS M/S SSA'S EMERALD MEADOWS [2016 (8) TMI 1145 - SUPREME COURT] - Decided in favour of assessee.
Shri Bhavnesh Saini, Judicial Member And Shri O.P. Kant, Accountant Member For the Assessee : Ms. Kriti Gupta, CA For the Revenue : Sh. N.K. Bansal, Sr. DR ORDER PER SHRI BHAVNESH SAINI, J.M. This appeal by assessee has been directed ag .....

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..... me in terms of explanation 1,2,3,4 and 5." 4. She has submitted that since the show cause notice contained both the limbs of section 271(1)(c) of the Act, therefore, it is void, therefore, no penalty could be imposed. In support of her contention, she has relied upon decision of the Karnataka High Court in the case of CIT vs. M/s SSA's Emerald Meadows reported in 73 taxmann.com 241 in which in the similar circumstances penalty was held to be rightly cancelled. This judgment is confirmed by the Supreme Court by dismissing the SLP of the Department reported in 73 taxmann.com 248. On the other hand, Ld. DR relied upon orders of the authorities below and submitted that the assessee did not raise the plea before the authorities below that there .....

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..... , the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The SLP of the Department has also been dismissed by the Supreme Court. The AO in the assessment order while making the addition has also noted "penalty proceedings u/s 271(1)(c) of the Act are initiated separately for filing inaccurate particulars/concealment of income". AO was not sure as to under which limb of section 271(1)(c) of the Act penalty proceedings have been initiated in the assessment order. The assessee while challenging the penalty order before Ld.CIT(A) has raised a specific ground that the order passed by the AO is erroneous, illegal and against the principles of natural jus .....

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