INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Initiation of penalty proceedings on one ground and imposition of penalty on different ground -

AO initated proceedings under section 271(1)(c) on the ground of 'furnishing of inaccurate particulars', however, penalty was levied for'concealment of income'.Held: Concealment of income and furnishing inaccurate particulars of income carry different connotations. Penalty should have been impolsed only on the ground on which assessee was called upon to answer. It was not open to AO at the time of imposing penalty to impose penalty on the grounds other than what assessee was called upon to meet. Since initiation of penalty proceedings under section 271(1)(c) was not identical with the ground on which penalty was imposed, imposition of penalty was not valid.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2003-04 to 2008-09

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