2019 (3) TMI 640

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....uthority erred to uphold penalty imposed under section 271(l)(c) of Income Tax Act, 1961. 2. That appellant accepted the additions in total income in assessment for the reasons that appellant was under prison and son of appellant, who looked after the income-tax proceedings was unaware of details of banking transactions made by appellant, hence, to buy peace of mind and to avoid litigation, family of appellant, which was under heavy stress accepted the addition in assessment, which was incorrect and against the facts. 3. That appellant never concealed particulars of his income and never furnished inaccurate particulars of his income. 4. That AO could not point out single concealment of facts of furnishing of inaccurate of particulars ....

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....is liable to be cancelled. 4. The ld. D.R., on the other hand, relied on the orders of the authorities below. 5. Heard. The show cause notice in question is as follows: From a perusal of this notice, it is crystal clear that the charge for which penalty is proposed to be levied under section 271(1)(c) of the Act, whether for concealment of income, or for furnishing of inaccurate particulars of income, is not specific. The law mandates that the authority who is proposing to impose penalty shall be certain as to the basis on which the penalty is being levied and the notice must reflect that specific reason, so that the assessee, to whom such notice is given, can prepare himself regarding the defence which he would like to take to support h....

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....ad with section 271(1)(c) of the Act should specifically state the grounds mentioned in 271(1)(c) i.e. whether it is for concealment of income or for furnishing of inaccurate particulars of income. Sending printed form where all the grounds mentioned would not satisfy the requirement of law. Assessee should know the grounds which he has to meet specifically. Otherwise, the principles of natural justice is offended. On the basis of such proceedings no penalty could be imposed to the assessee. Penalty proceedings are distinct from assessment proceedings though it emanates from the assessment proceedings still it is separate and independent proceedings all together. 3. 'Meherjee Cassinath Holdings Pvt. Ltd vs. ACIT (ITAT Mumbai)', ITA NO....