AO passed penalty order under section S. 271(1)(C) for furnishing inaccurate particulars of income or concealment of income. The Hon’ble Tribunal deleted the penalty holding that there was non-application of mind as the order did not tick the relevant clause of ‘concealment of income’ or ‘furnishing of inaccurate particulars of income’. The Hon’ble Delhi High Court observed that the penalty order, as a matter of fact, injects greater confusion in this behalf and that there was obviously no clarity in the mind of the Assessing Officer as to which limb of section 271(1)(c) got attracted in the instant case for initiation, followed by imposition of penalty. Hence, the decision of the tribunal was upheld. (AY. 2003-04)