2019 (7) TMI 1028

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....elated to the penalty levied u/s 271(1)(c) of the Income Tax Act, 1961 (in short 'Act'). In this case, the assessee filed the return of income declaring total income of Rs. 1,13,03,068/- on 29.11.2014 and the assessment was completed u/s 143(3) of the Act on total income of Rs. 1,38,12,136/-. A survey u/s 133A of the Act was conducted on 31.10.2013 and during the survey the excess stock of gold jewellery was found amounting to Rs. 1,37,66,588/- and the same was admitted by the assessee as additional income for the A.Y 2014- 15. In the assessment, the Assessing Officer (AO) made the addition of Rs. 24,81,568/- relating to difference between the remuneration claimed by the partners and the remuneration allowed as per the Act. The AO initiated....

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....es that the assessing officer was not sure of which of the offence he sought the explanation. In this regard, it is relevant to refer to the decision rendered by the Hon'ble Jurisdictional High Court in the case of Smt.Baisetty Revathi (ITTA.No.684/2016), wherein the Hon'ble Court has held as under: On principle, which penalty proceedings are sought to be initiated by the revenue under section 271(1)(c) of the Act of 1961, the specific ground which forms the foundation therefore has to be spelt out in clear terms. Otherwise, an assessee would not have proper opportunity to put forth his defense. When the proceedings are penal in nature resulting in imposition of penalty ranging from 1000Io to 3000/o of the tax liabilit....