2019 (6) TMI 1742

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....enalty u/s 271(1)(c) of the Act of Rs. 39,010/- for A.Y 2012-13 and Rs. 5,17,240/- for A.Y 2013-14 respectively. 2. At the outset, learned counsel for the assessee submitted that the penalty levied u/s 271(1)(c) is bad in law as the Assessing Officer has not specified in the notice u/s 271(1)(c) read with section 274 whether the penalty was leviable for concealment of income or for furnishing inaccurate particulars of income. It was further submitted that even while passing the penalty order, the AO has erred in levying penalty on both the limbs i.e. for concealment of particulars of income and for furnishing inaccurate particulars of income. Therefore, it shows lack of application of mind on the part of the Assessing officer and in abse....

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....ome of Rs. 8,58,740/- wherein the AO has made an addition of Rs. 1,60,000/- on account of unexplained expenditure u/s 69C of the Act. The said addition is basis the receipt of AIR information that the assessee has made payment through SBI Credit Card in tune of Rs. 1,60,000/- and subsequent analysis of books of accounts of the assessee wherein assessee has not shown the said expenditure in her books of account and the fact that the payment has been made in cash. Separately, the penalty proceedings were initiated for furnishing inaccurate particulars of income u/s 271(1)(c) of the Act. However, in the show cause notice u/s 274 read with section 271(1)(c) on 16.03.2015, the assessee was asked to file its submission as to why the penalty shoul....

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.... wishes to impose the penalty for furnishing inaccurate particulars of income. Thereafter, towards the end, he has invoked Explanation 1 to section 271(1)(c) which provides that if any addition is being made to the total income of the assessee for which the assessee failed to give any explanation or his explanation was found to be false, then qua that addition, it will be deemed that the assessee has concealed his income. Both the situations are contradictory to each other in the above order. Similar findings have been recorded in the penalty order for AY 2013-14. Therefore, in absence of a specific finding of the Assessing officer while passing the penalty order that the penalty is being imposed for furnishing inaccurate particulars of inc....