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TMI Blog2023 (11) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... articulars or furnishing inaccurate particulars or even, as indicated above, the case where both charges were sought to be levelled against the respondent/assessee. The penalty order, as a matter of fact, injects greater confusion in this behalf. There is obviously an internal inconsistency in the penalty order. The AO begins by saying that the respondent/assessee had furnished inaccurate particulars of his income in respect of disallowance of various additions made by the AO and, then, while computing the penalty that he imposed on the respondent/assessee, he goes on to say that the respondent/assessee had furnished inaccurate particulars of income or concealed income . There was obviously no clarity in the mind of the AO as to which limb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/- by holding that there was no application of mind in issue of notice proposing levy of penalty due to non-ticking of the relevant clause of 'concealment of income' or 'furnishing of inaccurate particulars of income ; ignoring that such action cannot invalidate the notice when the Bombay High Court in CIT v. Smt. Kaushalya has held that mere non striking off specific limb cannot by itself invalidate notice issued under S. 274 of the Act as the language of the Section does not speak about the issuance of notice. (iii) Whether the ITAT has failed to consider that it is the revenue's case that the assessee has failed to furnish true particulars of its income and therefore the levy of penalty was proper in this case? 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to comply with a notice under section 142(1)/143(2) of the Income Tax Act, 1961 dated Have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1, 2, 3, 4 and 5. You are hereby requested to appear before me at 11.00 A.M./P.M. on 28.01.2011 and show cause why an order imposing a penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made under section 271(1)(c). [Emphasis by us] 6. A perusal of the notice would show, something ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO and, then, while computing the penalty that he imposed on the respondent/assessee, he goes on to say that the respondent/assessee had furnished inaccurate particulars of income or concealed income . 9. There was obviously no clarity in the mind of the AO as to which limb of Section 271(1)(c) of the Act got attracted in the instant case for initiation, followed by imposition of penalty. 10. This issue is covered by several judgments of this court, the details of which are given hereafter: (i) Pr. Commissioner of Income Tax-3 v. Ms. Minu Bakshi, 2022:DHC:2814-DB. (ii) Pr. Commissioner of Income Tax v. Unitech Reliable Projects Pvt. Ltd., 2023:DHC:4258:DB. (iii) Pr. Commissioner of Income Tax (Central) - 2 v. Gopal Kumar Goyal, 2023:DH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 271(1)(c) of the Act, he needs to indicate, clearly, as to which limb of the said provision is attracted. The reason we say so is, that apart from anything else, the pecuniary burden may vary, depending on the infraction(s) committed by the respondent/assessee. In a given case, where concealment has taken place, a heavier burden may be imposed, than in a situation where an assessee is involved in furnishing inaccurate particulars. 23. Therefore, it is necessary for the AO to indicate, broadly, as to the provision/limb under which penalty proceedings are triggered against the assessee. 24. Clearly, this has not happened in the instant case. 25. As a matter of fact, even in the assessment order, whereby proceedings were trigger ..... X X X X Extracts X X X X X X X X Extracts X X X X
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