2024 (6) TMI 884

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....er of the Ld. Income-tax Officer, Ward 32(1)(2), Mumbai (in short, 'the A.O.') passed under section 271(1)(c) of the Act, date of order 12/03/2018. 2. The assessee has taken the following grounds of appeal:- "Ground -1. On the facts and the circumstances of the case, the Ld. A.O. erred in issuing the notice u/s 274 r.w.s. 271(l)(c) since the same does not mentions the satisfaction of the reasons for initiation of the penalty proceeding and hence the same needs to be quashed. Ground -2. On the facts and the circumstances of the case, the learned AO erred in not mentioning whether the notice has been issued towards "Concealment of income" or "for furnishing of inaccurate particulars", thus, the above notice itself is inva....

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....ce of defective notice by the Ld.AO during the proceedings under section 274 read with section 271(1)(c) of the Act. The relevant notice dated 13/03/2015 is reproduced as below:- 5. The Ld.DR argued and fully relied on the order of the Revenue authorities. 6. We heard the rival submissions and considered the documents available in the record. The issue is squarely covered by the judgement of Hon'ble Jurisdictional High Court in the case of Mohammed Farhan A. Shaikh Vs. PCIT (125 taxamnn.com 253) vide order dt. 11.3.2021. The relevant paragraphs are reproduced as below: - "179. Besides, the prima facie opinion in the assessment order need not always translate into actual penalty proceedings. These proceedings, in fact, commenc....

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....A penalty proceeding is a corollary; nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness. 182. More particularly, a penal provision, even with civil consequences, must be construed strictly. And ambiguity, if any, must be resolved in the affected assessee's favour." 6.1. The issue is squarely covered by the jurisdictional High Court which is legally binding on us. Ld. AO did not mention the nature of concealment in the notice issued u/s 274/271(1)(c). The c....

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....i-400092 PAN: AABPK8755H Whereas in the course of proceeding before me for the assessment year 2012-13 it appears to me that you:- *have-without-reasonable cause failed-to-furnish-me-return-of Income which-you-were required to furnish-by-a-notice- given-under-section-22(1)/22(2)/34 of the Indian Income-tax Act. 1922 or which-were -required to furnish-under-Section 139(1)-or-by-a notice given-under Section 139(2)448 of the Income -tax Act, 1961, No.dated or have without-reasonable-cause failed to furnish-it within the time allowed and the manner required by the said Section-139( -or -by- suel-notice. *have-without-reasonable cause-failed-to-comply-with-a-notice under-Section 22(4)23....