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TMI Blog2022 (7) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 also held that the standard proforma of notice under section 274 of the Act without striking of the irrelevant clause would lead to an inference of non-application of mind by the Assessing Officer and levy of penalty would suffers from non-application of mind. Also see M/S. SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [ 2019 (8) TMI 409 - DELHI HIGH COURT] The penalty provisions of section 271(1)(c) of the Act are attracted, where the Assessee has concealed the particulars of income or furnished inaccurate particulars of such income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. 2. Brief facts, relevant for adjudication of this appeal, are that the Assesseeby declaring the total income of Rs.12,49,150/- had filed its return of income on dated 29.03.2016, which was processed u/s. 143(1) of the Act. Subsequently, the case was selected for scrutiny and statutory notices u/s. 143(2) and 142(1) were issued to the Assessee. During the course of assessment proceedings, the Assessing Officer noticed that the Assessee had shown to have sold a land property for a sale consideration of Rs.82,90,000/- showing its year of purchase as 1980 for the purpose of indexation and after claiming exemption u/s. 54F of the Act for construction of existing residential accommodation, declared the long-term capital gains at Rs. Nil. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. The Assessee in support of its contention also relied upon various judgments of the Hon ble Apex Court and High Courts. 7. On the contrary the Ld. DR supported the orders passed by the authorities below and submitted that order under challenge does not suffer from any perversity, impropriety and/or illegality and hence needs no interference . 8. Heard the parties and perused the material available on record. The Assessee has challenged the penalty order on various grounds. In the instant case, the AO initiated penalty under section 271(1)(c) of the Act for concealing/ furnishing of particulars of Income and thereafter issued the notice u/s 274 read with 271(1)(c) of the Act without specifying the limb of the penalty and finally i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 case, the Tribunal was justified in deciding the appeals against the Revenue on the basis of notice issued, under Section 274 without taking into consideration the assessment order when the assessing officer has specified that the assessee has concealed particulars of income? 3. The Tribunal has allowed the appeal filed by the Assessee holding the notice issued by the Assessing Officer under Section 274 read with Section 271(1)(c) of the Income Tax Act, 1961 (for short 'the Act') to be bad in law as it did not specify which limb of Section 271(1)(c) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t had challenged the upholding of the penalty imposed under Section 271(1)(c) of the Act, which was accepted by the ITAT. 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(l)(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 order in Commissioner of Income Tax v. SSA s Emerald Meadows (2016) 73 Taxman.com 241(Kar), the appeal against which was dismissed by the Supreme Court of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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