TaxTMI 
TaxTMI 
2018 (3) TMI 1207
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.... 2. Brief facts of the case are that the assessee is a company formed with the object of carrying on the refining, manufacturing and the dealing etc in petroleum and chemical products. For the AY 2009-10, assessee filed their return of income on 30/09/2009 declaring a total income of Rs. 54,621/-. They have also shown a sum of Rs. 31,53,114/- as dividend income from mutual funds. Subsequent to the issuance of notice under section 143 (2) of the Income-tax Act, 1961 (for short "the Act"), assessee filed the revised computation of income on 24/08/2011 showing a sum of Rs. 26,71,666/-as dividend and a sum of Rs. 4,81,448/- as capital gains in addition to the business income of Rs. 55,621/-. Ld. AO held that the revised computation is not in....
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....Section 271(1)(c) of the Act, such a notice is liable to be bad in law as it did not specify under which limb of Section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. 4. Per contra, it is argued on behalf of the Revenue that the assessment order and the penalty order show that the penalty was proposed and imposed for furnishing of inaccurate particulars, and inasmuch as there is no ambiguity on this aspect, the notice does not suffer any illegality or irregularity. 5. We have carefully perused the material placed on record in the light of the statements made on behalf of the assessee including the judgment relie....
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....the existence of the grounds mentioned in Section 271(1)(c) when it is a sine qua non for initiation or proceedings, the penalty proceedings should be confined only to those grounds and the said grounds have to be specifically stated so that the assessee would have the opportunity to meet those grounds. After, he places his version and tries to substantiate his claim, if at all, penalty is to be imposed, it should be imposed only on the grounds on which he is called upon to answer. It is not open to the authority, at the time of imposing penalty to impose penalty on the grounds other than what assessee was called upon to meet. Otherwise though the initiation of penalty proceedings may be valid and legal, the final order imposing penalty wou....
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.... be bad in law as it did not specify which limb of Section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the assessee, has relied on the decision of the Division Bench of this Court rendered in the case of COMMISSIONER OF INCOME TAX -VS- MANJUNATHA COTTON AND GINNING FACTORY (2013) 359 ITR 565. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court. The appeal is accordingly dismissed." 8. The Special Leave Petition filed by the Rev....