2022 (8) TMI 484

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....ut concealment of particulars of income, nor there is clear indication for furnishing of inaccurate particulars of income, therefore, the notice u/s 271(1)(c) of the Act is bad in law. 2. The fact in brief is that assessee has filed return of income at Rs.3,08,17,813/- on 15.10.2013 and the assessment was completed u/s 143(3) of the Act at Rs.14,03,94,778/-. During the course of assessment the A.O noticed that assessee had traded in shares in huge volume i.e shares were purchased and sold on the same basis, therefore, the A.O treated the claim of long term capital gain and short term capital gain from the sale and purchase of shares as business activity and assess the same as income from business and profession to the amount of Rs.7,02,9....

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....t of Rs.7,00,98,571/- at Rs.1,13,97,870/-. 3. Aggrieved, the assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceedings before us at the outset the ld. counsel has submitted that notice u/s 274 r.w.s 271(1)(c) dated 13.03.2013 was issued without striking off the irrelevant limb of Sec. 271(1)(c) of the Act. The ld. Counsel has referred the decision of Hon'ble Bombay High Court in the case of Mohd. Farhan A. Shaikh Vs. DCIT 125 taxmann.com 253, wherein held that where the notice has been issued in a format without striking off irrelevant matter, penalty proceedings are vitiated. The ld. Counsel has also submitted the copy of the notice issued u....

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....culars of income or furnishing inaccurate particulars of income. It is clear that the notice did not indicate whether there was concealment of particulars of income or furnishing of inaccurate particulars of such income. The A.O has mentioned both limbs of Sec. 271(1)(c) of the Act i.e concealed the particulars of income or furnished inaccurate particulars of income in the notice. In this regard, Hon'ble Supreme Court in the case of Principal Commissioner of Income Tax (Central) Vs. Goa Coastal Resorts and Recreation (P) Ltd. (2021) 130 taxmann.co 379 (SC) held that where there was no record of satisfaction by A.O in relation to any concealment of income or furnishing of inaccurate particulars by assessee in notice issued for initiation of ....