The Tax Publishers2019 TaxPub(DT) 2685 (Pune-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

When notice of penalty is not specific about charge and when penalty order itself is not specific about exact limb/charge, both are vague in nature.

Penalty under section 271(1)(c) - Leviability - Non-mention of specific limb/charge in notice/order -

Notice issued under section 274 read with section 271(1) did not specify exact limb/charge for which penalty under section 271(1)(c) was levied. Notice mentioned both limbs of section 271(1)(c) i.e. 'concealment of income' and 'furnishing of inaccurate particulars of income'. Further in the penalty order also, it was mentioned that penalty under section 271(1)(c) was levied for concealing and furnishing of inaccurate particulars of income. Assessee therefore, contended that penalty under section 271(1)(c) was not leviable. Held: AO should be clear as to which of two limbs under which penalty is imposable, had been contravened or indicate that both have been contravened while initiating penalty proceedings. This was to provide an opportunity to assessee to prepare himself for defense as regards to exact charge on which penalty was imposed upon him under section 271(1)(c). In instant case, charge was vague and therefore, levy of penalty was not warranted.

Followed:CIT v. Shri Samson Perinchery ITA No. 1154 of 2014 : 2017 TaxPub(DT) 0672 (Bom-HC), CIT & Ors. v. M/s Manjunatha Cotton & Ginning Factory & Ors. (2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2006-07



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