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TMI Blog2020 (5) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... nce he is satisfied that there is concealment of income or furnishing of inaccurate particulars of income or both - as held in the case of CIT vs. Samson Perinchery [ 2017 (1) TMI 1292 - BOMBAY HIGH COURT] that concealment of income and furnishing inaccurate particulars of income carry different connotations, therefore, the order imposing penalty has to be made only on ground on which penalty proceedings have been initiated Since the AO has issued the notice u/s 274 r.w.s. 271 of the Act in a mechanical manner without striking off the inapplicable portion of the notice printed on standard format, the impugned order passed by the Ld. CIT(A) is not sustainable in law. Hence, we find merit in the contention of the Ld. counsel - Decided in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case, and in law, the learned CIT (A) erred in confirming the validity of the impugned penalty order passed under section 271 (1) (c) of the Income Tax Act, 1961 ('the Act') by the learned Assessing Officer. 2. On the facts and circumstances of the case, and in law, the learned CIT (A) erred in confirming penalty levied by the assessing officer under section 271 (1) (c) of the Act. 3. The learned CIT (A) failed to appreciate and ought to have held that impugned penalty order passed under section 271 (1) (c) of the Act was invalid and bad in law, since the notice issued under section 274 of the Act is not discernible as to whether the penalty proceedings were initiated for 'furnishing of inaccurate particulars of income' or co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .w.s. 271 (1) (c) of the Act, which shows that the AO sent the notice without striking off the inapplicable portion of the contents of notice printed on a standard proforma. The Ld. counsel relying on the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Samson Perinchery 392 ITR 4 (Bombay) submitted that failure on the part of the AO to state the specific charge on which the penalty was proposed to be levied would render the penalty order invalid. The Ld. counsel for the assessee further submitted that the Mumbai Benches of the Income Tax Appellate Tribunal (The Tribunal) have deleted the penalty levied by the AO after issuing notice u/s 274 r.w.s 271 of the Act in a mechanical manner without striking off the inapplicable/ir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge 2 of the Paper Book that the AO had issued the notice u/s 274 r.w.s. 271 (1) (c) of the Act without striking off the irrelevant/ inapplicable portion on the standard format. As pointed out by the Ld. counsel, the AO can initiate penalty proceedings against the assessee once he is satisfied that there is concealment of income or furnishing of inaccurate particulars of income or both. The Hon'ble Bombay High Court has held in the case of CIT vs. Samson Perinchery (supra) that concealment of income and furnishing inaccurate particulars of income carry different connotations, therefore, the order imposing penalty has to be made only on ground on which penalty proceedings have been initiated. Hence, satisfaction of AO with regard to the viola ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing concealment, then the notice has to be appropriately marked. Similar is the case for furnishing inaccurate particulars of income. The standard proforma without striking of the relevant clauses will lead to an inference as to non-application of mind." 8. Further as pointed out by the Ld. counsel the coordinate Benches of the Mumbai Tribunal have decided the identical issues in favour of the assessee in the cases of M/s G.L. Pharma & Associates vs. ITO, Sapna N. Jhaveri vs. ITO, Kasturlal Sheth vs. Joint Commissioner of Income Tax, Hiralal Kalpu Gupta vs. ITO, and Meherjee Cassinath Holdings (P.) Ltd., vs. Assistant Commissioner of Income Tax, referred above. In our considered view, since the AO has issued the notice u/s 274 r.w.s. 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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