2019 (6) TMI 791

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....come or filing of inaccurate particulars of income on the appellant, which is quite injust, illegal and against the facts of the case. 3. Appellant craves to leave, add, amend, alter or modify of any ground before final date of hearing. 3. Brief facts of the case as culled out from the records are that the assessee is an individual filed his return of income on 07.12.2011 for Assessment Year 2011-12 declaring income of Rs. 2,43,750/- that has been revised on 30.03.2013 declaring income of Rs. 10,51,750/-. The case was selected for scrutiny through CASS. Notice u/s 143(2) was issued on 07.09.2012 followed by issuance of notices u/s 143(2)/142(1) along with questionnaire. On the basis of AIR information Ld. A.O came to know that the assessee has sold immoveable property worth Rs. 16,15,000/- along with the other co owners during the year but in the original return of income Long Term Capital Gain of Rs. 8,07,996/- was not offered to tax and it was subsequently shown in the revised return of income filed on 30.3.2013. The assessment was completed assessing income at Rs. 11,01,750/- after making addition for low house hold withdrawals at Rs. 50,000/- to the income as shown in the re....

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....rticulars of income or for furnishing the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that though the Ld. Assessing Officer has made proper satisfaction on record in the assessment order for initiating penalty proceedings but in the notice issue u/s 274 r.w.s. 271(1)(c) of the Act, Ld. A.O remained silent by not specifying as for which charge the penalty proceedings have been initiated. To examine this fact we have gone through the impugned notice issued on 31.12.2013 for initiating the penalty proceedings u/s 271(1)(c) of the Act for Assessment Year 2009-10 and for reference the same is reproduce below:- OFFICE OF THE INCOME TAX OFFICER-2(2), INDORE Aayakar Bhawan Annex, Room No. L08, Opp. White Church, Indore I.T.N.S.29 NOTICE UNDER SECTION 271(1)(c) READ WITH SECTION 274 OF INCOME TAX ACT, 1961 PAN AIFPK8558E Date 31.12.2013 To, Shri Ashraf Khan, 98, Shree Nagar Extn Indore(M.P) Sir/Madam, Whereas in the course of proceedings before me for the Assessment Year 2011-12, it appears to me that you: - X *have without reasonable cause failed to furnish the return of income which you were required to furnish by a notice ....

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....ided by the Ld. A.O as well as Ld.CIT(A) during the course of penalty proceedings as well as appellate proceedings towards the levy of penalty. 12. Now the assessee is in appeal before the Tribunal, firstly raising the legal issue pleading that Ld. A.O has wrongly initiated the penalty proceedings by not specifying the charge for levy of penalty i.e. whether the penalty proceedings has been initiated for concealing of particulars of income or for furnishing the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that though the Ld. Assessing Officer has made proper satisfaction on record in the assessment order for initiating penalty proceedings but in the notice issue u/s 274 r.w.s. 271(1)(c) of the Act, but Ld. A.O remained silent by not specifying as to which charge the penalty proceedings have been initiated. To examine this fact we have gone through the impugned notice issued for initiating the penalty proceedings u/s 271(1)(c) of the Act which is placed at Page-52 of the Paper book and the relevant extract is reproduced below: To Shri Varad Mehta 239, Sunny Palace M P Nagar Zone-1, Bhopal Sir / Madam, Sub:- Penalty proceedin....

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....ssesssee in another limb is bad in law". Though in the instant appeal the Ld. A.O has made proper satisfaction in the body of the assessment order but in the notice issued u/s 274 r.w.s. 271(1)(c) of the Act he failed to mention the limbs for which penalty proceedings have been initiated. It is the negligence of the Ld. A.O in not making proper specific charge in the notice u/s 274 about the addition for which penalty proceedings have been initiated. Ld. A.O should be clear as to whether the alleged addition goes under the limb of "concealment of particulars of income" or "furnishing inaccurate particulars of income". Merely issuing notice in general proforma will negate the very purpose of natural justice as held by the Hon'ble Apex Court in the case of Dilip N Shraf 161 Taxmann 218 that "the quasicriminal proceedings u/s 271(1)(c) of the Act ought to comply with the principles of natural justice. 14. We therefore respectfully following above referred judgments and in the given facts and circumstances of the case are of the considered view that the alleged notice issued u/s 274 r.w.s. 271(1)(c) of the Act dated 31.12.10 is invalid, untenable and suffers from the infirmity of....