2022 (11) TMI 477

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....llowing grounds of appeal: "1. Erroneous levy of penalty under section 271(1)(c) On the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) - 6 ('the Ld. CIT(A)') erred in upholding the action of Ld. Assistant Commissioner of Incometax, Circle - 9 ('the Ld.AO') of levying penalty, being 100% of tax on the addition to returned income amounting to INR 38,37,270, under section 271(1)(c) of the Act. Rs.38,37,270/-. 2. Penalty proceedings under section 271(1)(c) are invalid On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the action of the Ld. AO for initiating the penalty proceedings without specifying the reason for penalty initiatio....

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....on 271(1)(c) without taking cognizance of the fact that transfer pricing adjustment had arisen merely on account of difference of opinion on inclusion of comparables which was not contested by the Appellant to buy peace of mind. Rs.38,37,270/-. The Appellant prays that the transfer pricing adjustment arisen on account of difference of opinion on inclusion of comparables by the appellant and revenue cannot lead to a conclusion of furnishing of inaccurate particulars and thus the penalty levied in this regard, u/s 271(1)(c) ought to be deleted. 5. Erroneous levy of penalty for furnishing of inaccurate particulars u/s 271(1)(c) On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred i....

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....ords i.e. "have concealed the particulars of your income/furnished inaccurate particulars of such income." 5. We have also gone through the assessment order dated 26.12.2016 passed under section 143(3) r.w.s 144C(13) & 254 of the Income Tax Act, 1961. In the assessment order also AO has merely mentioned penalty proceedings under section 271(1)(c) are initiated separately. Thus, even in the assessment order, the AO has not specified whether the penalty has been initiated for the concealment of income or filing inaccurate particulars of income. 6. The only issue is levy of Penalty of Rs.38,37,270/- u/s.271(1)(c) of the Act. On perusal of the notice u/s 271(1)(c) dated 26.12.2016 issued by the Assessing Officer (AO), it is observed that ....

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....that the show cause notice issued in the present proceedings was liable to be upheld. It may be noted that all the decisions relied upon by the learned counsel for the Revenue were considered by the Full Bench while answering the issues referred to it on reference. The Full Bench having considered these decisions and having answered the question as regards defect in the notice under section 271(1)(c) of the said Act resulting in vitiating the penalty proceedings, we find ourselves bound by the answers given by the Full Bench. It would not be permissible for us to disregard this aspect and take a different view of the matter. Accordingly substantial question of law no. III is answered by holding that since the show cause notice date....