| |
| The Tax Publishers2019 TaxPub(DT) 5129 (Kol-Trib) INCOME TAX ACT, 1961,
Section 271(1)(c)
Where AO imposed penalty under section 271(1)(c), but notice issued under section 274 was defective, as the AO did not specify as to whether the assessee was accused for concealment of particulars of income or it had furnished inaccurate particulars of income, therefore, levy of penalty could not be sustained.
|
Penalty under section 271(1)(c) - Defective notice - Notice under section 274 not specifying grounds on which penalty sought to be imposed -
AO levied penalty under section 271(1)(c), which was confirmed by CIT(A). Assessee's contention was that notice issued under section 274 was defective, as the AO did not specify as to whether the assessee was accused for concealment of particulars of income or it had furnished inaccurate particulars of income. Held: High Court in case of CIT & Anr. v. Manjunatha Cotton & Ginning Factory, (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC) has held that notice under section 274 should specifically state as to whether penalty was being proposed to be imposed for concealment of particulars of income or for furnishing inaccurate particulars of income. The notice under section 274 did not spell out the grounds on which the penalty was sought to be imposed. Therefore, the notice under section 274 was defective. Thus, the levy of penalty could not be sustained.
Relied:CIT & Anr. v. Manjunatha Cotton & Ginning Factory, (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC)
REFERRED : T Ashok Pai v. CIT (2007) 292 ITR 11 (SC) : 2007 TaxPub(DT) 1251 (SC); CIT v. Virgo Marketing (P) Ltd. in (ITA No. 1345 of 2007, dt. 25-1-2008) : 2008 TaxPub(DT) 1518 (Del-HC)
FAVOUR : In assessee's favour
A.Y. : 2009-10 & 2010-11
IN THE ITAT, KOLKATA BENCH
 SUBSCRIBE FOR FULL CONTENT
|