TaxTMI 
TaxTMI 
2024 (6) TMI 878
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.... of Income Tax (Appeals)-20, Chennai [CIT(A)] dated 29-09-2023 in the matter of penalty levied by the Ld.AO u/s 271(1)(c) vide order dated 30-09-2022. 2. Facts leading the levy of penalty are that the assessee-firm is stated to be engaged in the money lending business. Pursuant to survey action u/s 133A on 19-02-2020, the case for this year was reopened and an assessment was framed u/s 147 on 22-03-2022. The survey proceedings revealed that the assessee introduced new deposits / unsecured loans for Rs. 48 Lacs which were treated as unexplained cash credit. The assessee claimed interest expenditure of Rs. 5.92 Lacs against the same in this year which was also admitted as undisclosed income. The assessee offered aggregate amount of Rs. 53.....
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....d correctness of interest expenditure during survey proceedings, the assessee offered the same to tax. The said offer could not be treated as voluntary disclosure. Finally, the penalty was confirmed against which the assessee is in further appeal before us. 5. The Ld. AR, at the outset, raised a pertinent legal issue and drew attention to the penalty notice issued u/s 274 r.w.s. 271(1)(c) dated 22- 03-2022 to submit that no proper satisfaction was drawn by Ld. AO qua exact charge against the assessee before levying impugned penalty. The Ld. AR submitted that 'concealment of income' and 'furnishing of inaccurate particulars of income' are two separate distinct charges and only one of the specific charges could be pressed into by Ld. AR ag....
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....raming of specific charge against the assessee would vitiate the penalty proceedings. The penalty could be levied only for a specific charge. Furnishing of inaccurate particulars of income would arise in a situation where the assessee has not disclosed the particulars correctly or the particulars disclosed by the assessee are found to be incorrect whereas concealment of particulars of income would mean that the assessee has concealed the income and has not reflected certain income, at all, in its return of income. Therefore, for each of the addition, Ld. AO has to specify as to which limb was applicable to the facts of the case and it could not be left to mere presumption or guess-work of the assessee. Framing of specific charges is sine-qu....
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.... notice under Section 271(1)(c) did not specifically state as to whether assessee was guilty of concealing particulars of his income or had furnished inaccurate particulars of income, the impugned penalty was invalid and same was to be set aside. The Ld. Sr. DR has referred to a decision of Hon'ble High Court of Madras in the case of Amtex Software Solutions Pvt. Ltd. (W.P.No.16140 of 2019 dated 12.06.2019). In the litigation, the assessee filed writ petition assailing show-cause notice issued by Ld. AO u/s 274 r.w.s. 271 proposing penalty against the assessee. The assessee assailed the notice on the ground that specific charge was not framed against the assessee. The Hon'ble Court, in para 16 & 17 of the order, concurred with assessee's su....