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| The Tax Publishers2019 TaxPub(DT) 0167 (Pune-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where AO failed to mention charge at the time of recording of satisfaction for initiating penalty under section 271(1)(c), penalty proceedings were liable to be quashed.
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Penalty under section 271(1)(c) - Leviability - Failure to mention charge while recording satisfaction for initiating penalty -
AO while initiating penalty proceedings had merely mentioned, 'penalty proceedings under section 274 read with section 271(1)(c) are separately initiated'. He did not specify charge under section 271(1)(c), i.e., whether penalty proceedings have been initiated for concealing particulars of income or furnishing inaccurate particulars of income. However, while passing order levying penalty AO has mentioned both the charges of section 271(1)(c). Held: Assessee should know grounds which he has to meet specifically. Otherwise, the principle of natural justice is offended. On the basis of such proceedings, no penalty could be imposed on assessee.
Relied upon:CIT v. Manjunatha Cotton & Ginning Factory reported as (2013) 359 ITR 565 (Karn-HC) : 2014 TaxPub(DT) 202 (Karn-HC),
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2006-07
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