2019 (1) TMI 1200

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....old a house property which was not disclosed in the return of income filed by the assessee. The assessee explained that he has sold the house property for Rs. 55 lakhs, however, the same was not taxable as the capital gains had been invested in the purchase of another property, therefore, income was exempt u/s 54 of the Act. The AO, however, found that property purchased was a free hold commercial plot and not a residential house as is required to be purchased in compliance with the provisions of Section 54 of the Act. This amount was, therefore, added to the income. Another addition was made in respect of amount of interest which was claimed deduction in respect of the said property. The penalty proceedings were initiated and in absence of....

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....ported in 99 taxmann.com 152. 5. We have considered the rival submissions and perused the material on record. It is admitted fact that the AO before levy of the penalty u/s 271(1)(c) of the Act issued show cause notice to the assessee dated 31/12/2013, copy of which is filed at page 1 of the Paper Book. In the said notice the AO has mentioned "have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1,2,3,4 and 5". In this notice the AO has mentioned both the limbs of section 271(1)(c) of the Act that assessee have concealed the particulars of the income or furnished inaccurate particulars of such income. AO has not specified in the notice as to under which limb of section 2....