TaxTMI 
TaxTMI 
2019 (3) TMI 640
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.... in ITA No.502/Lkw/2018: "1. That Lower Authority 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 ....
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....) of the Act, any penalty levied on the basis of such a notice is bad in law and it 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....
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.... ITR 565 (Karn.). In this case, it has been held by the Hon'ble High Court that notice under section 274 read 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 ....
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....the penalty. 7. Facts being similar in the other appeals, i.e., ITA No.503 to 505/Lkw/2018, these appeals are also allowed, with the same observations as given in ITA No.502/Lkw/2018 8. In the result, all the appeals are allowed. (Order pronounced in the open court on 08/03/2019) ============= Document 1 NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961 PAN: AJMPS4451L To, Shri Brahama Prakash Singh, 94, Vaishali Enclave, Sector-9, Indira Nagar, Lucknow-226016. Office of the, Dy. Commissioner of Income Tax, Range-V, Lucknow Dated: 15. 01.2015 Whereas in the course of proceeding before me for the assessment year 2007-08 it appears to me that you: *Have without reas....