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TMI Blog2019 (4) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... icer issues notice under section 274 in the standard proforma and the inappropriate words are not deleted, the same would postulate that the Assessing Officer was not sure as to whether he was to proceed on the basis that the assessee had concealed the particulars of his income or furnished inaccurate particulars of income. Thus levy of penalty suffers from non-application of mind. Thus the manner in which the AO has issued notice under section 274 r.w.s. 271(1)(c) of the Act dated 19.03.2013 without striking off the irrelevant words, the penalty proceedings show anon-application of mind by the Assessing Officer and is, thus, unsustainable. - Decided in favour of assessee. - ITA No. 6720/Del/2018 - - - Dated:- 3-4-2019 - Shri N.S. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Bhattacharya vs. ACIT [ITA no. 1303/Kol/2010]. Recently Hon'ble SC in case of VeerbhadrappaSangappa Co. [TS-381-SC-2016] dismissed the revenue SLP against Karnataka HC Judgement on law of penalty. 6. He submitted that in the case of the assessee, the Assessing Officer in the penalty notice has held that the assessee has concealed the particulars of his income and has also furnished inaccurate particulars thereof f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs 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 effect and by virtue of the amendment, the assessing officer has initiated the penalty by properly recording the satisfaction for the same? (3) Whether on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 a well-accepted proposition that the aforesaid two limbs of section 271(1)(c) of the Act carry different meanings. Therefore, it was imperative for the Assessing Officer to strike- off the irrelevant limb so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant 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 in the notice issued u/s 274 read with section 271(1)(c ) of the Act has not specified as to whether the assessee has furnished inaccurate particulars of his income or concealed his income. Hence, respectfully following the quoted decision of Hon'ble Karnataka High Court, we cancel the order of the Assessing Officer dated 30.03.2017 levying penalty of ₹ 3,97,576/- and allow the ground of appeal of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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