INCOME TAX ACT, 1961

Section 271(1)(c) and 274

Penalty under section 271(1)(c) - Defective notice - Non-mention of specific charge -

Tribunal had allowed appeal filed by assessee, holding the 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 proceedings had been initiated, i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. Held: Manner in which AO had issued notice under section 274 read with section 271(1)(c) without striking off irrelevant words, it showed non-application of mind by AO and was, thus, unsustainable. AO while levying penalty under section 271(1)(c) had observed that assessee had concealed particulars of his income and has also furnished inaccurate particulars thereof. Thus, he was not specific as to whether penalty was levied for concealment of income or for furnishing of inaccurate particulars of income. Order of AO was accordingly cancelled.

Followed:CIT & Ors. v. Ssa's Emerald Meadows 2015 (11) Tmi 1620 (Karn.), Relied:M/s. SSA's Emerald Meadows, (2016) 73 248(SC), Dilip N. Shroff v. JCIT & Anr. (2007) 291 ITR 519 (SC) : 2007 TaxPub(DT) 1247 (SC), CIT & Ors. v. M/S Manjunatha Cotton & Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC),

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2009-10

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