2018 (5) TMI 432

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....c) of the Income Tax Act, 1961 (hereinafter called "the Act"). 2. The brief facts of the case are that the assessee had filed his original return of income showing income of Rs. 1,86,039/-. The assessee is a salaried employee of the Noida authority and besides the salary income he had shown income from house property and income from other sources in his return of income. The assessee filed the revised return declaring income of Rs. 39,84,410/-. The case was subsequently selected for scrutiny and the assessment was completed under section 143 (3) of the Act at an income of Rs. 67,81,910/- after making additions in respect of capital gains and unexplained cash deposits. The assessee did not prefer any appeal before the first appellate auth....

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....legal ground that the notice issued under section 274 of the Act by which the penalty proceedings were initiated did not specify the charge or the limb under which the penalty proceedings under section 271 (1) (c) of the Act were being initiated. It has been pleaded in the written submission that failure to specify the limb under which the penalty proceedings have been initiated resulted in the penalty proceedings being invalid and bad in law because the specification of the limb is mandatory. In the written submissions the assessee has relied on a number of case laws in support of this contention. Written submissions in respect of the merits of the penalty have also been filed. However, as the assessee has raised a legal ground challenging....

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....ld Meadows, reported in (2016) 73 taxmann.com 241 (Kar) and the relevant observations of the Hon'ble Karnataka High Court are as under- "2. This appeal has been filed raising the following substantial questions of law, Whether, omission if assessing officer to explicitly mention that penalty proceedings are being initiated for furnishing of inaccurate particulars or that for concealment of income makes the penalty order liable for cancellation even when it has been proved beyond reasonable doubt that the assessee had concealed income in the facts and circumstances of the case? Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the penalty notice under Sect....