2016 (12) TMI 1603

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....r alleged "Concealment of income" or "furnishing inaccurate particulars of income" be levied when legality of assessment proceedings itself is subjudice before Hon'ble High Court and the question to that effect has already been admitted in Quantum Appeal?" 3. The brief facts of the case are that the return in the case of assessee company was filed on 31.12.1993 declaring income of Rs. 2,70,719/-. Along with the return audit report dated 30.09.1993 as per requirement of Section 44AB has also been furnished. The return was processed u/s.143(1)(a) on 28.03.1994. Subsequently in the course of assessment proceedings for the assessment year 94-95 it was found that assessee had shown payment to Sh. Nand Kishore, brother of Sh. D.K. Choudhar....

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....t of hire charges to the above person was not genuine in this year also and therefore there was a case of escapement/under assessment of income and accordingly reassessment proceedings u/s 147 were initiated by issuing notice u/s 148 on 4.12.97. 4. From the order of the assessment, the Assessing Officer has used the language as under: "Penalty proceedings under Section 271(1)(c) for concealment of income/furnishing of inaccurate particulars of Income have been initiated separately." 5. Counsel for the appellant relied upon the decision of Andhra Pradesh High Court in case of Chennakesava Pharmaceuticals Vs. Commissioner of Income Tax reported in (2012) 349 ITR 196, wherein it has been held as under: "In Reliance Petr....

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.... (SC) it has been held as under "It is of some significance that in the standard proforma used by the Assessing Officer in issuing a notice despite the fact that the same postulates that inappropriate words and paragraphs were to be deleted, but the same had not been done. Thus, the Assessing Officer himself was not sure as to whether he had proceeded on the basis that the assessee had concealed his income or he had furnished inaccurate particulars. Even before us, the learned Additional Solicitor General while placing the order of assessment laid emphasis that he had dealt with both the situations. The impugned order, therefore, suffers from non-application of mind. It was also bound to comply with the principles of natur....