TaxTMI 
TaxTMI 
2019 (7) TMI 1319
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....430/-. The Assessing Officer completed the assessment u/s.143(3) of the Act determining total income at Rs. 37,28,572/-. The CIT(A) in the quantum proceedings allowed relief to the tune of Rs. 8,95,747/- out of undisclosed cash of Rs. 33,02,620/- and confirmed an amount of Rs. 24,06,873/- and also interest income of Rs. 6522/-.. Thereafter, on appeal before the Tribunal, relief for an amount of Rs. 11,45,051/- was allowed and balance amount of Rs. 12,61,822/- was confirmed. Subsequently, the Assessing Officer asked the assessee as to why an order imposing penalty u/s.271(1)(c) of the Act should not be made. In reply, the assessee submitted that it is a matter of cash deposit which received as advance from the customer to sale ancestral p....
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.... of the case, order passed by the lower Revenue authorities and arguments addressed by the rival parties, the sole question arises for determination in this case is "as to whether the assessee has concealed particulars of income or has furnished inaccurate particulars of income during assessment proceedings while interpreting the provisions contained u/s 271(1)(c) of the Act?". 6. The ld. AR for the assessee furnished a show-cause notice issued by the AO u/s 274, placed in the file and submitted that notice is not a valid notice to initiate the penalty proceedings as the assessee has not been made aware if it has concealed the particulars of income or has furnished inaccurate particulars of such income and for this proposition relied upo....
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....Income Tax Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorized representative you may show cause in writing on or before the said date which will be considered before any such order is made under section 271. Sd/-(L.R.Muduli)ITO, Ward 2(2), Bhubaneswar. 9. Undisputedly, addition made against the assessee during quantum proceedings have been confirmed partly. It is settled principle of law that the penalty cannot be imposed merely on the ground that addition made in the income of the assessee has been confirmed rather to proceed with imposition of penalty u/s 271(1)(c), the AO has to prove that there was concealment of particulars of income or assessee has fu....
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....uffers from non-application of mind. The Hon'ble Supreme Court in the case of CIT vs. SSA's. Emarld Meadows dated 11th January, 2017 passed in Special Leave to Appeal (CC No.11485/2016) has held that Omission by the AO to explicitly specify in the penalty notice as to whether penalty proceedings are being initiated for furnishing of inaccurate particulars or for concealment of income makes the penalty order liable for cancellation. As regards to the decision relied upon by the Assessing Officer, I am of the considered opinion that the views expressed by Their Lordships in Dharmendra Textiles Processor's case (supra) do not bring about any radical change in the scheme of section 271(1)(c) though these views do seek to nullify the Dilip N ....