2019 (3) TMI 562

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....(in short 'DCIT'/ 'ITO'/ AO') for the A.Y. 2006-07 vide order dated 30.12.2010 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'). The penalty under dispute was levied by ACIT, CC-36 under section 271(1)(c) of the Act vide order dated 22.06.2011. 2. This appeal is as regards to the order of CIT(A) confirming the levy of penalty under section 271(1)(c) of the Act. For this assessee has raised the following grounds: - "On the facts and in circumstances of the case, and in law, the Learned CIT (A) - Mumbai, erred in upholding the penalty under section 271(1)(c) of the Income Tax Act, 1961 by a) Not considering the fact that the appellant firm had commenced business on 121.11.2005 and the first account....

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....of jurisdiction as the assessing officer levied the penalty on both the limbs i.e. for concealment of particulars of income and furnishing of inaccurate particulars of income. For this assessee raised following additional ground:-  "1. The notice dated 31.12.2010 issued under section 271 r.w.s 274 of the Act and the penalty order passed under section 271(1)(c) of the Act are bad in law since the penalty was initiated for no specific limb as provided under section 271(1)(c) of the Act, but levied on both the limbs that is for concealment of income and furnishing of inaccurate particulars of income which is not permissible as per law. Hence, the notice dated 31.12.2010 and the subsequent penalty order passed under section 271(1)....

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....s on the charge in the order of assessment is for concealment of particulars of income under section 271(1)(c) of the Act. The penalty cannot be levied under section 271(1)(c) of the Act on the charge which is different than the charge initiated i.e. charge initiated under section 271(1)(c) of the Act and penalty levied under different charge for filing of inaccurate particulars of income. Accordingly, we find that this issue is covered by Hon'ble Bombay High Court in the case of CIT vs. Samson Perinchery (Bom) in ITA No. 1154 of 2014 and dated 05-01-2017. 7. As regards to the specific charge, we find that the AO while levying penalty under section 271(1)(c) of the Act in his discussion clearly stated that the expression used in section ....