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TMI Blog2023 (12) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... nal, via the impugned order, had set aside the findings of the Commissioner of Income Tax (Appeals) [in short, "CIT(A)"] and directed the Assessing Officer (AO) to delete the penalty amounting to Rs. 7,99,90,570/-. 4. The reason given by the Tribunal in setting aside the order of the CIT(A) was that the AO, while initiating penalty proceedings under Section 271(1)(c) of the Act, should have alluded to the limb under which penalty is proposed to be levied. 4.1 In other words, the AO should have stipulated as to whether the penalty was proposed to be imposed on the respondent/assessee for concealment of particulars of its income, or furnishing inaccurate particulars. 4.2 Both limbs find mention in Section 271(1)(c) of the Act. 5. In the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :DHC:5689-DB. (vi) Commissioner of Income Tax (Exemptions) Delhi vs Jamnalal Bajaj Foundation, 2023:DHC:5691-DB. (vii) Pr. Commissioner of Income Tax Delhi (Central)-3 vs Shyam Sunder Jindal, 2023:DHC:6138-DB. (viii) Pr. Commissioner of Income Tax-6 vs Modi Rubber Ltd., 2023:DHC:7856-DB. 7. We may, for convenience, quote from one of the judgments i.e., Unitech Reliable Projects Pvt. Ltd., which in our opinion, provides the rationale as to why it is necessary to indicate to the assessee the specific limb of Section 271(1)(c) of the Act under which penalty proceedings are triggered against him: "15. According to the Tribunal, the notice dated 14.03.2015 issued under Section 274 read with section 271(1)(c) of the Act did not speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in. holding that the penalty notice under Section 274 r.w.s. 271(1)(c) is bad in law and. invalid inspite the amendment of Section 271(1B) with retrospective effect and by virtue of 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which limb of Section 271(1)(c) was being triggered qua the petitioner. This is evident from the following observation made by the AO: "Penalty proceeding u/s 271(1)(c) is being initiated separately for concealment of income & for furnishing inaccurate particulars of income." 20. We may note, that another coordinate bench of this Court, of which one of us [i.e., Rajiv Shakdher, J.] was a party has reached the same conclusion in PCIT vs. Minu Bakshi 2022 (7) TMI 1307-Delhi. 21. Penalty proceedings entail civil consequences for the assessee. The AO is required to apply his mind to the material particulars, and indicate clearly, as to what is being put against the respondent/assessee when triggering the penalty proceedings. 22. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is attracted in the given facts and circumstances of the case. 9. It is our view, that this clarity would be necessary as the pecuniary burden that the assessee may be mulct with could vary, depending on the infraction committed by him. 10. Thus, in the given case, where concealment has taken place, a heavier burden may be imposed, as compared to the situation where the assessee furnishes inaccurate particulars. We may also make it clear that there may be circumstances where both limbs are attracted. If that is the situation, the notice should allude to this aspect. 11. Given the aforesaid circumstances, we are of the view that no substantial question of law arises for our consideration. 12. Accordingly, the appeal is closed. 13. Give ..... X X X X Extracts X X X X X X X X Extracts X X X X
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