TaxTMI 
TaxTMI 
2020 (4) TMI 366
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....g penalty of Rs. 8,32,767/- imposed by the AO under section 271(1)(c) of the Income Tax Act, 1961. 2. In the course of hearing, learned AR of the assessee submitted a copy of notice issued by AO under section 274 r.w.s. 271 of the IT Act 1961 on 30.12.2016 and it is available on page 61 of the appeal memo and he pointed out that in this notice, allegation is not made clear by the AO and he stated that the assessee is guilty of concealment of income or furnishing of inadequate particulars of income. He submitted that under these facts, the penalty order of the AO is not sustainable and in this regard, he placed reliance on the judgment of Hon'ble Karnataka High Court rendered in the case of Manjunatha Cotton and Ginning Factory as reported ....
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....xistence of such conditions should be dis cernible from the Assessment Order or order of the Appellate Authority or Revisional Authority. f) Even if there is no specific finding regarding the existence of the conditions 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 ass essment order passed, at least, a direction to initiate proceedings under Section 271(1)(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 ar....
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....peal, if the appellate authority records satisfaction, then the penalty proceedings have to be initiated 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 ....