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TMI Blog2024 (5) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... ak Securities Pvt. Ltd. [ 2023 (12) TMI 714 - DELHI HIGH COURT ] as held AO is required to apply his mind to the material and indicate, clearly, to the assessee what is being put against him. In other words, which limb of Section 271(1)(c) of the Act is attracted in the given facts and circumstances of the case. 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. 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agraph four (4) of the penalty order. 8. We can do no better than to extract paragraph four (4) of the penalty order, as embedded in paragraph seven (7) of the impugned order passed by the Tribunal: "Since, the above additions were treated as concealment of income/furnishing inaccurate particulars of income by the assessee, a notice u/s : 274 r.w.s. 271 (1)(c) of the Income Tax Act, 1961 dated 28.12.2016 and 14.06.2017 were issued and duly served-upon the assessee company. The AR of the assessee company filed its reply to the notice vide letter dated 23.06.2016. The penalty proceedings u/s 271(1) (c) are decided on the basis of the income tax provisions, judicial pronouncements and the material available on record and the submission o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be imposed. In other words, the notice which was served on the respondent/assesee did not indicate, as to whether penalty was being levied on account of concealment of income, or for the reason that it had furnished inaccurate particulars. The Tribunal, based on the order of the Supreme Court in CIT v. SSA's Emerald Meadows [2016] 73 taxmann.com 248/242 Taxman 180, observed that the penalty proceedings would have to quashed. 16. For the sake of convenience, the relevant part of the impugned order passed by the Tribunal is extracted as under: "7.2 The Hon'ble Apex Court in case of SSA's Emerald Meadows, (2016) 73 taxmann.com 248 (SC) dismissed the Special Leave Petition filed by the Revenue against the judgment rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led 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) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the Assessee, has relied upon the decision of the Division Bench of this Court rendered In the case of COMMISSIONER or INCOME TAX v. MANJUNATHA COTTON AND GINNING FACTORY (2013) 359 ITR 565. 4. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 triggered, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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