Penalty under Section 271(1)(c) fails where the charge is inconsistent between inaccurate particulars and concealment.

Penalty under Section 271(1)(c) of the Income-tax Act was found unsustainable because the Assessing Officer recorded satisfaction for furnishing inaccurate particulars of income but levied penalty for concealment of income. The two limbs are distinct and cannot be used interchangeably. Where the charge is vague or inconsistent, the penalty notice and order fail for lack of clear specification of the exact basis of liability, and the penalty cannot stand.

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Issues: Whether penalty under Section 271(1)(c) of the Income-tax Act, 1961 was sustainable when the Assessing Officer recorded satisfaction for one limb of the provision but levied penalty on the other.

Analysis: The assessment record showed satisfaction for penalty on the basis of furnishing inaccurate particulars of income, whereas the penalty order proceeded on concealment of particulars of income. The two limbs carry different connotations and cannot be used interchangeably. Where the charge is vague or inconsistent, the levy of penalty cannot stand.

Conclusion: The penalty was held unsustainable and the assessee succeeded.

Ratio Decidendi: A penalty under Section 271(1)(c) of the Income-tax Act, 1961 is invalid if the assessing authority does not clearly specify and consistently maintain the exact limb of charge on which the penalty is founded.

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