Sec. 271(1)(c) of Income Tax Act, 1961— Penalty —Notice issued by AO under section 274 read with section 271(1)(c) was bad in law as it did not specify under which limb of Section 271(1)(c), penalty was levied.

Facts: The assessee has raised grounds of appeal that in the assessment order the AO did not specified whether the penalty is for concealment or of inaccurate particulars of income.

Held, that AO did not record his satisfaction for initiation of penalty proceeding. Appeal filed by the assessee holding the notice issued by the AO under section 274 read with Section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1)(c), the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. Notice issued by AO under section 274 read with section 271(1)(c) to be bad in law as it did not specify which limb of Section 271(1)(c) , the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. In the result, the appeal filed by the Assessee stands allowed - HINDON FORGE (P) LTD. V/s DEPUTY CIT - [2020] 80 ITR (TRIB) 545 (ITAT-DELHI)