2020 (3) TMI 715

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....t the grievance is only one about penalty of Rs. 332,477/- imposed by the AO u/s 271 (1) (c) of I. T. Act. 3. In course of hearing, learned AR of the assessee submitted that the penalty order is bad in law because the notice issued by the AO u/s 274 r.w.s. 271 of I. T. Act is available on page 70 of the Paper Book and as per the same, no specific allegation is made as to whether the charge is about concealment of income or furnishing of inaccurate particulars of income. Reliance was placed on the Judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Manjunath Cotton & Ginning Factory, 359 ITR 565. Learned DR of the revenue supported the orders of the lower authorities. He placed reliance on the tribunal order rendered ....

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....no specific finding regarding the existence of the cordrtions mentioned in Section 271(1)(c), at least the facts set out in Explanation 1(A) & (B) it should be discernible from the said order which would by a legal fiction constitute concealment because of deeming provision. g) Even if these conditions do not exist in the assessment order passed, at least, a direction to initiate proceedings under Section 271(l)(c) is a sine qua non for the Assessment Officer to initiate the proceedings because of the deeming provision contained in Section 1(B). h) The said deeming provisions are not applicable to the orders passed by the Commissioner of Appeals and the Commissioner. i) The imposition of penalty is not automatic. ....

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....itiated by the appellate authority and not the Assessing Authority. p) Notice under Section 274 of the Act should specifically state the grounds mentioned in Section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of incorrect particulars of income q) Sending printed form where all the ground mentioned in Section 271 are mentioned would not satisfy requirement of law. r) The assessee should know the grounds which he has to meet specifically. Otherwise, principles of natural justice is offended. On the basis of such proceedings, no penalty could be imposed to the assessee. s) Taking up of penalty proceedings on one limb and finding the assessee guilty of another limb is bad in la....