2019 (2) TMI 660

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..... ich limb of Section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income. Even in the assessment order A.O. did not mention as to under which limb of Section 271(1)(c) of the Act, the penalty have been initiated against the assessee as noted above. Therefore, the show cause notice .....

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..... 2007-2008 challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961. 2. Briefly the facts of the case are that assessee is a firm and filed return of income declaring income of ₹ 1,40,030/-. The A.O. examining the books of account and details, made certain additions against the assessee in a sum of ₹ 16,03,830/- and assessed the total income at ₹ 17,43,860/ .....

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..... .2009 before levy of the penalty in which the A.O. has mentioned as follows: have concealed the particulars of your income or ---------- furnished inaccurate particulars of such income. 3.1. He has submitted that A.O. has not specified in which limb of Section 271(1)(c) of the Act, the penalty have been levied. Therefore, the issue is covered by the Judgment of Hon ble Karnataka High Court .....

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..... y in which limb of Section 271(1)(c) of the I.T. Act, 1961, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income. The decision of Hon ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows (supra) have been confirmed by the Hon ble Supreme Court reported in 73 taxmann.com 248 by dismissin .....

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..... would include the validity of the show cause notice which is mandatory before levy of the penalty. Since the notice itself is not legal, therefore, no penalty could be levied against the assessee. We, accordingly, set aside the Orders of the authorities below and cancel the penalty. 6. In the result, appeal of assessee is allowed. Order pronounced in the open Court. - - TaxTMI - TMITax .....

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