2019 (1) TMI 87

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Act wherein the AO brought to tax interest income amounting to Rs. 6,63,336/- which is difference between the interest income reflected in Form 26AS and what has been declared by the assessee in his return of income. Separately penalty proceedings U/s 271(1)(c) of the Act were initiated for concealment of income /furnishing of inaccurate particulars of income. In the notice issued U/s 274 r.w.s 271(1)(c) dated 22.03.2016, the notice was issued for concealing particulars of income or furnishing inaccurate particulars of income. Thereafter, the AO passed the penalty order dated 21.09.2016 wherein the penalty amounting to Rs. 2,04,970/- was levied for concealing the particulars of income to the extent of Rs. 6,63,336/-, the same has been c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee concealing the particulars of income or furnishing inaccurate particulars of income. The notice doesn't specify the exact charge against the assessee as to whether it relates to concealing the particulars of income or furnishing inaccurate particulars of income. The subsequent notice dated 17.08.2015 is against silent on the exact charge against the assessee. It is a settled position in law that the imposition of penalty under section 271(1)(c) is invited when the conditions specified therein are satisfied and further, the two expressions "concealing the particulars of income" and "furnishing inaccurate particulars of income" denote different connotations. It is therefore imperative that the assessee be made aware as to which of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of Hon'ble Supreme Court in case of Dilip N Shroff reported in 161 Taxman 218 where it was held as under: "83. 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. 84. The impugned order, therefore, suffers from non-appli....