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TMI Blog2021 (9) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 (8) TMI 1145 - SC ORDER] and Pr. CIT vs. Sahara India Life Insurance Company Ltd. [ 2019 (8) TMI 409 - DELHI HIGH COURT] we are of the considered view that when the notices issued by the AO are bad in law being vague and ambiguous having not specified under which limb of section 271(1)(c) of the Act, the penalty proceedings initiated u/s 271(1)(c) are not sustainable. We are of the considered view that when the very initiation of the penalty by way of issuance of vague and ambiguous notices u/s 271(1)(c) read with section 274 of the Act without specifically charging the assessee if he has concealed the particulars of income or has furnished inaccurate particulars of such income, subsequent penalty proceedings are not sustainab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty proposed to be imposed either for filing of inaccurate particulars of income or for concealment of particulars of income, and as such, the notice is not sustainable and not curable. 5. The ld. DR strongly objected to the admission of the additional ground. It is the say of the ld. DR that the penalty has been levied for earning commission in providing accommodation entries and the ld. CIT(A) confirmed the penalty holding that the assessee has concealed the income being engaged in clandestine activities . 6. Per contra, the ld. counsel for the assessee stated that the ld. CIT(A) has considered this issue while dismissing the appeal of the assessee. The ld. counsel for the assessee pointed out to the relevant paras from the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ^ax Act: 1961. If you do hot with to avail yourself of this opportunity, or being heard in person or through authorised person, you may show cause in writing on or before the said date which will be considered before any/search order is made u/s 271(1)(c). D.C.I.T. C.C.-11, New Delhi Dy. CIT Central Circle 11, New Delhi - 55 10. A bare perusal of the aforementioned notices show that the Assessing Officer himself was not aware/certain as to whether he is issuing notice to initiate penalty proceedings either for concealment of income or for furnishing inaccurate particulars of income. 11. In our considered opinion, the extracted notices are vague and ambiguous, as the charge framed by the Assessing Officer is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Sahara India Life Insurance Company Ltd. ITA No. 475/2019 order dated 02.08.2019 while deciding the identical issue held as under: 21. The Respondent had challenged the upholding of the penalty imposed under Sec. 271(1)(c) of the Act, which was accepted by the IT AT. It followed the decision of the Karnataka High Court in CIT v. Manjunatha Cotton Ginning Factory 359 ITR 565 (Kar) and observed that the notice issued by the AO would be bad in law if it did not specify which limb of Section 271(1) (c) the penalty proceedings had been initiated under i.e. whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. The Karnataka High Court had followed the above judgment in the subsequent or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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