For penalty u/s 271(1)(c), the specific ground which forms the foundation has to be spelt out in clear terms.

For penalty u/s 271(1)(c), the specific ground which forms the foundation has to be spelt out in clear terms.

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For penalty u/s 271(1)(c), the specific ground which forms the foundation has to be spelt out in clear terms.
When penalty proceedings are sought to be initiated by the Revenue u/s 271(1)(c), the specific ground which forms the foundation has to be spelt out in clear terms.
Penalty—Concealment of income—Furnishing inaccurate particulars of income—Assessee filed return of income—Subsequently, a search and seizure operation u/s 132 was conducted in assessee’s residential premises—Accordingly, a notice u/s 153A was issued and in reply, assessee filed his return of income by admitting enhanced total income—AO completed asse ssment by making addition u/s 2(22)(e) and unexplained investment in M/s. A—CIT(A) directed AO to delete addition made u/s 2(22)(e)—ITAT dismissed Revenue’s appeal—Subsequently, AO communicated assessee regarding penalty proceedings initiated u/s 271(1)(c) and accordingly, levied penalty—CIT(A) held that penalty order passed u/s 271(1)(c) was invalid—Held, person who was accused of conditions mentioned in s. 271 should be made aware of grounds on which imposition of penalty was proposed as he had a right to contest such proceedings and should have full opportunity to meet case of Revenue so as to show that conditions stipulated in s. 271(1)(c) do not exist and that he was not liable to pay penalty—When penalty proceedings were sought to be initiated by Revenue u/s 271(1)(c), specific ground which formed foundation therefore had to be spelt out in clear terms otherwise, on assesee would not have proper opportunity to put forth his defense—CIT(A) had rightly held that penalty order passed u/s 271(1)(c) was invalid and accordingly penalty levied was cancelled—Revenue’s ground dismissed.
ASSISTANT COMMISSIONER OF INCOME TAX & ANR. vs. HARI PRASAD BHARARIA & ANR.
(2019) 55 CCH 0411 VishakapatnamTrib

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