2016 (5) TMI 1577

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....ng disposed of by a common order for the sake of convenience. 2. The brief facts of the case are that the assessee is engaged in the business of embroidery of Textiles on job work basis. Besides a derives income from house property, share of profit from, interest income and profit & loss from shares. The assessee declared short term capital loss from shares and furnished relevant details of shares and bank account alongwith the original return of income, which was accepted as per intimation u/s 143(1) dated 28.02.2003 by the AO. However, the AO issued a notice u/s 148 and in response the assessee, filed the return of income as per the original return furnished on 27.04.2009. During the reassessment proceedings, the assessee furnished the r....

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....ssessee had concealed the particulars of his income, or had furnished inaccurate particulars of income. The ld. counsel for the assessee drew our attention to the notice dated 17.12.2002 issued to the assessee under section 274 read with section 271(1)(c) by the AO, where the AO has mentioned "Have concealed the particulars of your Income or furnished inaccurate particulars of such income". He further submitted that the AO is not sure whether the assessee is liable to penalty for concealment of particulars of income or furnishing inaccurate particulars of income. He further drew our attention to the assessment order, where the AO has stated that "Penalty has been initiated u/s 271(1)(c)". According to him, this shows that the AO was not sur....

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....order. 7. We have heard both the parties and have gone through the material available on record. From the facts discussed above, it is obvious that during the assessment proceedings, the AO has not recorded satisfaction about concealment of income or furnishing inaccurate particulars, as apparent from the body of the assessment order for the year under consideration. In the notice dated 17.12.2002, the AO observed: ".... have concealed the particulars of your income or furnished inaccurate particulars of such income." Thus, the AO has failed to point out the specific fault/charge due to which penalty has been imposed. In the absence of specific fault/charge, penalty cannot be levied. Reliance placed by the ld. counsel for the assessee on t....