2019 (7) TMI 1034

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....short 'Act') for the Assessment Year (A.Y.) 2011-12. 2. Brief facts of the case are that the assessee filed the return of income declaring total income of Rs. 3,74,350/- for the A.Y.2011-12 on 28.11.2011. The assessment was completed u/s 143(3) on total income of Rs. 8,76,173/- by making additions u/s 68 of Rs. 4,17,031/-, Rs. 36,533/- and consequent interest of Rs. 48,259/-. Accordingly, the AO has initiated penalty u/s 271(1)(c) by issue of notice dated 27.03.2014 and levied the penalty of Rs. 98,279/- u/s 271(1)(c) of the Act. 3. Aggrieved by the order of the AO, the assessee went on appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee and confirmed the penalty imposed by the AO. 4. Against the orde....

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.... allow the appeal of the assessee. 8. We have heard both the parties and perused the material placed on record. There is no dispute that the notice issued by the AO was defective in as much as non striking of irrelevant column is concerned for which act of the assessee, AO sought explanation, whether for concealment of income or for furnishing the inaccurate particulars. The Ld.DR relied on the decision of Commissioner of Income Tax Vs. Chandulal cited supra. However, in the recent judgement of Hon'ble High Court of Andhra Pradesh in I.T.T.A.No.684/2016 in Principal CIT-1 Vs. Smt.Baisetty Revathy, held that non striking of irrelevant column renders the notice invalid. This Tribunal has followed the order of the Hon'ble jurisdictional ....

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....me or for furnishing of inaccurate particulars. As per the decision of the Hon'ble Jurisdictional High Court cited, for starting the penalty proceedings, the condition precedent is that the assessing officer must be satisfied that a person has either concealed the particulars of his income or furnished inaccurate particulars of such income. The person who is accused of the conditions mentioned in Section 271 should be made aware of the grounds on which imposition of penalty is proposed as he has a right to contest such proceedings and should have the full opportunity to meet the case of the revenue so as to show that the conditions stipulated in Section 271(1)(c) do not exist and that he is not liable to pay the penalty. The Hon'ble High Co....

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....tiated separately. Neither in the assessment order nor in the penalty notice, the assessing officer has put the assessee on notice for which offence, the penalty u/s 271 was initiated. Therefore, the case is squarely covered by the decision of the Hon'ble Jurisdictional High Court of cited (supra) wherein the Hon'ble high court held as under: "On principle, when 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, on assessee would not have proper opportunity to put forth his defence. When the proceedings are penal in nature resulting in imposition of penalty ranging from 100% t....