Having regard to the manner in which the Assessing Officer has issued notice under section 274 r.w.s. 271(1)(c) of the Act without striking off the irrelevant words, the penalty proceedings show a non-application of mind by the Assessing Officer and is, thus, unsustainable.- ITAT Delhi

• The AO completed the assessment for the assessment year under appeal by making addition on Rs. 5,72,246/- under the head “kitti Scrap Sale.

• Thereafter, he issued notice u/s 274 read with section 271 of the Act on 24.10.2016.

• Thereafter, he levied penalty u/s 271(1)(c ) of the Act of Rs. 1,05,973/- for furnishing inaccurate particulars of income.

• On appeal, the CIT(A) confirmed the action of the AO.

• We find that the facts in the present appeal are not in dispute and the Assessing Officer in the notice issued u/s 274 read with section 271(1)(c) dated 24.10.2016 has not specified the exact charge, viz., whether the charge is that the Assessee has furnished inaccurate particulars of income or “concealed particulars of income” by striking out the irrelevant portion of printed show cause notice.

• The penalty provisions of section 27l(1)(c) of the Act are attracted where the assessee has concealed the particulars of income or furnished inaccurate particulars of such income.

• It is also a well-accepted proposition that the aforesaid two limbs of section 271(1)(c) of the Act carry different meanings.

• Therefore, it was imperative for the Assessing Officer to strike- off the irrelevant limb so as to make the assessee aware as to what is the charge made against him so that he can respond accordingly

Since the assessing officer issued notice u/s 274 r.w. section ​​ 271(1)( c) of the Income Tax Act without mentioning the specific limb under which the case of assesse falls i.e. whether the assesse has furnished inaccurate particulars or concealed his income, the notice issued is unsustainable ​​ and liable to be deleted .