2020 (6) TMI 398

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....H SAINI, J.M. This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-20, New Delhi, Dated 15.03.2019, for the A.Y. 1996-1997, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961. 2. Briefly the facts of the case are that assessment in this case was completed under section 144 of the I.T. Act, 1961 on 27.03.2002 at an income of Rs. 39,80,780/- agai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....c) of the I.T. Act in assessment order for initiating the penalty proceedings. In the notice issued before levy of the penalty Dated 11.09.2017, the A.O. has mentioned the following : "Have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of Explanation 1, 2, 3, 4 and 5." 3.1. Learned Counsel for the Assessee, therefore, submitted that it is n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., which was accepted by the ITAT. It followed the decision of the Karnataka High Court in CIT v. Manjunatha Cotton & Ginning Factory 359 ITR 565 (Kar) and observed that the notice issued by the AO would be bad in law if it did not specify which limb of Section 271(1) (c) the penalty proceedings had been initiated under i.e. whether for concealment of particulars of income or for furnishing of inac....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oted above. The language used in the notice therefore clearly show that notice issued by the A.O. for levy of the penalty proceedings under section 271(1)(c) of the I.T. Act, 1961, to be bad in Law as it did not specify in which limb of Section 271(1)(c) of the I.T. Act penalty proceedings have been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particula....