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| The Tax Publishers2019 TaxPub(DT) 0613 (Mum-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Order imposing penalty has to be made only on the ground of which penalty proceedings had been initiated, and it could not be on a fresh ground of which assessee had no notice.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability - Initiation of penalty proceedings on one limb while imposition for the two breaches
AO initiated proceedings under section 271(1)(c) for one of breaches mentioned thereunder whereas imposed penalty stating that assessee had concealed its income as well as furnished inaccurate particulars of income.Held: Satisfaction of AO with regard to only one of the two breaches mentioned under section 271(1)(c), for initiation of penalty proceedings could not warrant/penalty being imposed for the other breach. This is more so, as an assessee would respond to the ground on which penalty had been initiated/notice issued. It must, therefore, follow that order imposing penalty has to be made only on the ground of which penalty proceedings had been initiated, and it could not be on a fresh ground of which assessee had no notice.
Applied:CIT v. Samson Perincherry [ITA Nos. 953, 1097, 1154 & 1226 of 2014] : 2017 TaxPub(DT) 0672 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, MUMBAI BENCH
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