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TMI Blog2024 (9) TMI 1626X X X X Extracts X X X X X X X X Extracts X X X X ..... rly specify whether the penalty is being levied for concealment of income or furnishing inaccurate particulars of income. In the present case, notice issued u/s 274 r.w.s. 271(1)(c) does not specify the nature of default. Several judicial precedence have held that when the charge is not clearly specified in the penalty notice, the penalty proceedings are rendered invalid. Hon ble Supreme Court in the case of CIT Anr, -vs.- M/s SSA s Emerald Meadows [ 2015 (11) TMI 1620 - KARNATAKA HIGH COURT] and in the case of Manjunatha Cotton and Ginning Factory [ 2013 (7) TMI 620 - KARNATAKA HIGH COURT] have held that vague notice u/s 274 rendered the penalty proceedings are void ab initio. In the present case, AO failed to specify the exact charge whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration received from the sale of copy rights and cable rights. In this assessment, ld. Assessing Officer initiated the penalty proceedings under section 271(1)(c) of the Act for alleged concealment of income or furnishing inaccurate particulars of income. The assessee preferred an appeal before the ld. CIT(Appeals) against the addition made by the ld. Assessing Officer, where Rs. 80,00,000/- relief was granted levying the addition of Rs. 76,00,000/- sustained by the ld. CIT(Appeals) in the appellate order dated 31st December, 2016. Based on this sustained addition, ld. Assessing Officer imposed a penalty of Rs. 16,03,200/- under section 271(1)(c) of the Act on 31st March, 2018. 3. Aggrieved with the penalty order, assessee filed an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee had not been able to explain the discrepancy in its income. 6. We have heard the rival contentions and gone through the record carefully. The primary issue before us is whether the penalty under section 271(1)(c) is sustainable in the light of the procedural lapse raised by the assessee. It is settled position of law that in the penalty proceedings under section 271(1)(c), ld. Assessing Officer must clearly specify whether the penalty is being levied for concealment of income or furnishing inaccurate particulars of income. In the present case, notice issued under section 274 read with section 271(1)(c) does not specify the nature of default. Several judicial precedence have held that when the charge is not clearly specified i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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