INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - AO initiated penalty proceeding on one limb while levied penalty on other limb -

Assessee challenged levy of penalty under section 271(1)(c) as regards addition made on account of bogus purchases on the ground that AO while passing assessment order had recorded that assessee had 'furnished inaccurate particulars of income'. But, while passing penalty order under section 271(1)(c), AO held that assessee had concealed the particulars of income and made itself liable for penalty. Held: Initiation of penalty proceedings on one limb and levy of penalty on other limb was bad in law and hence, there was no merit in levy of penalty.

REFERRED :

FAVOUR : In assesse's favour.

A.Y. : 2011-12

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