2016 (8) TMI 1556

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....or AY 2007-08 vide his order dated 29.12.2010. Penalty u/s. 271(1)(c) of the Act was imposed by ACIT, CC-XXIII, Kolkata vide his order dated 02.05.2011. 2. The only issue to be decided in this appeal of assessee is as to whether the ld CIT(A) is justified in confirming the penalty u/s. 271(1)(c) of the Act in the sum of Rs. 44,17,390/- in the facts and circumstances of the case. 3. The brief facts of this issue are that there was a search and seizure operation u/s. 132(1) of the Act in this case on 04.04.2008. During the course of search at the residence of the assessee several books of account and other documents were found and seized in which various monetary transactions were found and recorded. In the assessment order the Ld. AO obser....

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....ar involved is 2007-08. The due date for filing of return of income for the assessment year under appeal had expired before the date of search and since, the appellant had disclosed unaccounted additional income of Rs.l,30,80,560/- during the course of search, that income was definitely not declared by him in any return of income filed by him before the date of search. Therefore, even though the appellant had declared such income in his return of' income furnished u/s.l53A, i.e., after the date of search, particulars of such income are deemed to have been concealed or inaccurate particulars of such income are deemed to have been furnished as provided by Explanation 5A. Similarly, the AO had given a finding in the assessment order tha....

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....of brevity. It is well settled that the penalty proceedings are distinct and separate from assessment proceedings. It is also well settled that the ld AO should specifically pinpoint the charge of offence committed by the assessee in as much as to whether he had concealed the particulars of his income or furnished inaccurate particulars of his income in his penalty notice. We find that the show cause notice u/s.274 of the Act dated 29.12.2010 kept in page 1 of the assessee's paper book, which is in a printed form does not strike out as to whether the penalty is sought to be levied on the for "furnishing inaccurate particulars of income" or "concealing particulars of such income". On this aspect we find that in the show cause notice u/s.274 ....