AI Drafter 
TaxTMI 
TaxTMI 
2022 (2) TMI 813
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.... an individual and had filed his return of income on 29th March, 2012, declaring a loss of Rs. 5,01,092/-. A search and seizure and survey operation u/s. 132/133A of the IT Act was conducted by the Investigation Wing in the case of the assessee along with other cases of the Jagat group. In response to the notice u/s. 153A, the assessee submitted that the return filed earlier u/s. 139(1) should be treated as return filed u/s. 153A. The AO completed the assessment u/s. 143(3)/153A determining the total income of the assessee at Rs. 11,36,640/- wherein he made addition of Rs. 2,40,000/- being income from salary and Rs. 8,96,639/- being the income surrendered by the assessee. So far as the surrender of above income is concerned, the AO, during ....
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....ngs u/s. 271(1)(c) of the Act. Referring to the notice u/s. 274 r.w. section 271(1)(c) dated 28th March, 2013, the ld. Counsel for the assessee drew the attention of the Bench to the first notice issued by the AO for levy of penalty wherein also the inappropriate words were not struck off. Referring to the copy of the assessment order, the ld. Counsel submitted that the AO, after making the addition of Rs. 8,96,639/- has, while recording his satisfaction, has mentioned that "satisfaction is hereby recorded that the assessee has concealed the particulars of income or has furnished inaccurate particulars of income." He accordingly submitted that both at the time of recording his satisfaction as well as at the time of issuing penalty notice, t....
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....Hon'ble High Court has held that the order of penalty must clearly state whether it is for concealment or for furnishing inappropriate particulars. Order stating penalty for one of the offences was not valid. The Hon'ble Court has held that it is incumbent upon the AO to state whether penalty was being levied for concealment of particulars of income by the assessee or whether any inaccurate particulars of income has been furnished by the assessee. Referring to various other decisions, he submitted that under identical circumstances when the inappropriate words in penalty notice are not struck off, the coordinate Benches have held that the penalty proceedings initiated by the AO are not in accordance with the law and accordingly, the....
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....ng inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to the inaccurate particulars. Relying on various other decisions, he submitted that the penalty levied by the AO and sustained by the CIT(A) should be deleted. 9. The ld. DR, on the other hand, heavily relied on the order of the CIT(A). Referring to the order of the CIT(A), the ld. DR submitted that the ld. CIT(A) has clearly and categorically mentioned how the assessee has surrendered the income because of the detection by the AO. Had the AO not picked up the case for scrutiny, the assessee would not have voluntarily come forward to surrender the income. He accordingly submitted that the order of the CIT(A) being in accordance wi....
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....that the assessee has concealed the particulars of income or has furnished inaccurate particulars of income. Penalty proceedings u/s. 271(1)(c) is initiated on this issue, separately." 12. A perusal of the two notices as well as the assessment order clearly shows that the AO has not specified under which limb of the provisions of section 271(1)(c) he has initiated the penalty proceedings. 13. The Hon'ble Karnataka High Court in the case of Manjunatha Cotton and Ginning Factory (supra) has held that notice u/s. 274 of the Act should specifically state the grounds mentioned under section 271(1)(c) i.e., whether it is for concealment of income or for furnishing of inaccurate particulars of income. Sending printed form where all the g....
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....ECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT. 1961. To, Sh. Rakesh K. Pawa E-21, Park Lane Kalindi Colony, N.Delli Office of the Dy. Commissioner of Income Tax Central Circle- 09, New Delhi Dated: 28-03-13 Where as in the course of proceedings before me for the assessment Year 2009-10 it appears to me that you :- shave without reasonable cause failed to comply with-a-notice-under-section 142(1)/143(2) of the Income Tax Act. 1961, dated- *have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of explanation 1,2,3,4 and 5. You are hereby requested to appear before me at Room No. 357, E-2, ARA Centre, Jhandewalan Extn. New Delhi 11.30. ....