TaxTMI 
TaxTMI 
2016 (8) TMI 503
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....ng grounds : " 1. The order of the learned CIT (Appeals) is opposed to law, facts and circumstances of the case. 2. The order is passed in haste, without providing sufficient and reasonable opportunity of being heard. 3. The order is passed against the principle of natural justice and thus liable to be quashed. 4. The ld. Assessing Officer erred in levying penalty under Section 271(1)(c) and the learned CIT (Appeals) erred in upholding the same. 5. The ld. Assessing Officer and CIT (Appeals) ought to have appreciated that the appellant has neither concealed any income nor furnished inaccurate particulars of such income. 6. The learned CIT (Appeals) failed to take cognizance of the fact that the notice under Section 271(1)(c) was ....
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....d the particulars of your income or furnished inaccurate particulars of such income. You are hereby requested to appear before me at my office on 2.2.2012 at 11.30 AM and show cause why an order imposing penalty on you should not be made under section 271 of the Income Tax Act, 1961. If you do not with to avail yourself of this opportunity of being heard in person or through authorized representative, you may show cause in writing on or before the said date which will be considered before any such order is made under Section 271(1)(c). Sd/- (Pradeep P Aspatwar) Asst. Commissionerof Income Tax Circle 13(1), Bangalore." As it is clear from the highlighted portion of the notice that the Assessing Officer has not made any specific mention....
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....the first limb being concealment, then the notice has to be appropriately marked. Similar is the case for furnishing inaccurate particulars of income. The standard proforma without striking of the relevant clauses will lead to an inference as to non-application of mind. INDEPENDENT PROCEEDING 62. The penalty proceedings are distinct from assessment proceedings, and independent therefrom. The assessment proceedings are taxing proceedings. The proceedings for imposition of penalty though emanating from proceedings of assessment are independent and separate aspects of the proceeding, Separate provision is made for the imposition of penalty and separate notices of demand are made for recovery of tax and amount of penalty. Also separate appeal....
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....Indeed, in certain cases, it is possible for the Assessing Officer to issue a penalty notice or initiate penalty proceedings even long before the assessment is completed. There is no statutory requirement that the penalty order should precede or be simultaneous with the assessment order. In point of fact, having regard to the mode of computation of penalty outlined in the statute, the actual penalty order cannot be passed until the assessment is finalised. CONCLUSION 63. In the light of what is stated above, what emerges is as under: a) Penalty under Section 271(1)(c) is a civil liability. b) Mens rea is not an essential element for imposing penalty for breach of civil obligations or liabilities. c) Willful concealment is not an essen....
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....y concluded by authorities it has resulted in payment of such tax or such tax liability came to be admitted and if not it would have escaped from tax net and as opined by the assessing officer in the assessment order. 1) Only when no explanation is offered or the explanation offered is found to be false or when the assessee fails to prove that the explanation offered is not bonafide, an order imposing penalty could be passed. m) If the explanation offered, even though not substantiated by the assessee, but is found to be bonafide and all facts relating to the same and material to the computation of his total income have been disclosed by him, no penalty could be imposed. n) The direction referred to in Explanation IB to Section 271 of th....