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TMI Blog2019 (7) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... accurate particulars of income on his part, the penalty u/s 271(1)(c) of the Act is not sustainable.The proceedings show a non-application of mind by the Assessing Officer and is, thus, unsustainable. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... and the scope of section 271(1)(c) has been elaborately discussed in the said decision of Hon'ble Supreme Court. 4. On appeal, the CIT(A) confirmed the levy of penalty and hence, the assessee is in appeal before the Tribunal. 5. I have heard the rival submissions, and perused the record of the case. Undisputedly, penalty of ₹ 3,92,709/- has been levied u/s 271(1)(c) of the Act primarily on the ground of cash deposit of ₹ 33,02,620/- deposited in the bank by the assessee. It is also not in dispute that the addition of ₹ 11,45,051/- has been confirmed by the Tribunal in quantum appeal. It is also not in dispute that the penalty has been imposed for intentionally furnishing "inaccurate particulars of income". In the backdr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings before me for the assessment year 2011-12 it appears to me that you:- ………………………………………………………………………………………………… ………………………………………………………………………………………………… have without reasonable cause failed to comply with a notice…… ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticulars of income or furnished inaccurate particulars of such income rather same has been strike out in the printed proforma. The Hon'ble Karnataka High Court in the case of Manjunatha Cotton & Ginning Factory, 359 ITR 565 (Kar) observed that the levy of penalty has to be clear as to the limb under which it is being levied. As per Hon'ble High Court, where the Assessing Officer proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court held that the standard proforma of notice under section 274 of the Act without striking of the irrelevant clauses would lead to an inference of non-application of mind by the Assessing Officer. The Hon'ble Supreme Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st principle and as seen in the above light, while this view is in accordance with the scheme of the section and the amendment brought about in the scheme of the section by insertion of explanation 1 to Section 271(1)(c), it does not bring about any radical change to the main scheme of section 271(1)(c) itself. In the background 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(l)(c) of the Act dated 29.3.2014 for assessment year 2011-12 without mentioning that whether the assessee had concealed the particulars of his income or furnished inaccurate particulars of income, I am of the considered view that when the assessee has not been specifically ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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