9911796707
TMI Blog2024 (7) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant matter vitiate the penalty proceedings. A penalty proceeding is a corollary, nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness. Thus we direct the deletion of the penalty levied in this case. Decided in favour of assessee. - Shri Pavan Kumar Gadale (JM) And Smt Renu Jauhri (AM) For the Assessee : Shri Mani Jain For the Department : Shri P. D. Chougule (Sr. DR) ORDER PER RENU JAUHRI (AM) :- The assessee has filed this appeal challenging the order dated 23-01-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate particulars of income. Vide order dated 29.06.2017, penalty of Rs. 19,08,767/- was levied u/s 271(1)(c) of the Act. The Ld. CIT(A) vide his order dated 23.01.2024 has dismissed the appeal of the assessee after holding that he had furnished inaccurate particulars of expenses under various heads, and therefore, the penalty had been rightly imposed by the Ld. AO. 4. Before us, the Ld. AR vehemently argued that there was no application of mind while issuing notice the notice for penalty proceedings, the AO did not strike off one of the two limbs stating whether the assessee had concealed particulars of income or furnished inaccurate particulars of income . In support of his claim, a copy of the show cause notice u/s 274 read with section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness. 182. More particularly, penal provision, even with civil consequence, must be construed strictly. And ambiguity, if any, must be resolved in the affected assessee s favour. 6. Respectfully following the decision of the Hon ble jurisdiction High Court in the case of Mohd. Farhan A. Shaikh (supra), we direct the deletion of the penalty levied in this case. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 24/0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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