2020 (4) TMI 785

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.... this appeal, assessee has challenged the levy of penalty of Rs. 4 lacs u/s 271(1)(c) of the IT Act both on legality and on merit. On legality, the ITAT after relying on its own decision in case of Shipra Jain & Ors. Vs. ACIT in ITA No.922/JP/2018 order dt. 31.10.2018 wherein the decision of Hon'ble ITAT Amritsar Third Member Bench in case of HPCL Mittal Energy Ltd. Vs. ACIT ITA No. 554 & 555/Asr/2014 order dt. 07.05.2018 has been considered, gave the following findings at Para 9 of the order:- "In the instant case, we find that the notice initiating the penalty proceedings is uncertain where the AO uses the expression "concealment particulars of income or furnished inaccurate particulars of income". However, during the penalty procee....

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....naccurate particulars of such income etc., the penalty order is vitiated. 5. It was submitted that in the present case, in the assessment order penalty proceedings is initiated for concealment of income/ furnishing inaccurate particulars of income, penalty notice is issued for concealing particulars of income or furnishing inaccurate particulars of income and penalty is imposed at Para 3 of the penalty order by stating that assessee is found guilty of furnishing inaccurate particulars of income but penalty is imposed on the concealed income. Thus, there is uncertain charge at the time of initiation of penalty proceedings and also at the time of passing the penalty order. This has been overlooked by ITAT while upholding the legality of the ....