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| The Tax Publishers2020 TaxPub(DT) 4646 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where show cause notice under section 274 read with section 271(1)(c) was issued without striking off any of the twin charges on which the penalty under section 271(1)(c) was initiated, the penalty levied under section 271(1)(c) was not sustainable in law and hence, the same was liable to be deleted.
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Penalty under section 271(1)(c) - Leviability - Defective notice - Non-striking off any of twin charges
AO levied penalty under section 271(1)(c). Assessee contended that notice under section 274 read with section 271(1)(c) had been issued without mentioning any of the charges as the AO did not cancel/ strike off the twin charges, thus, the penalty levied under section 271(1)(c) was bad in law. Held: Penalty under section 271(1)(c) is not sustainable if none of the twin charges in notice under section 274 are cancelled or struck off. In instant case, show cause notice under section 274 read with section 271(1)(c) was issued, wherein the AO did not strike off any of the twin charges on which the penalty under section 271(1)(c) was initiated. Therefore, the penalty levied under section 271(1)(c) was not sustainable in law and hence, the same was deleted.
Followed:Pr. CIT & Ors. v. Sahara India Life Insurance Company Ltd. ITA. Now. 475/2019 : 2019 TaxPub(DT) 6933 (Del-HC) CIT v. SSA'S Emerald Meadows (2016) 73 Taxman.com 241 (Kar.) : 2018 TaxPub(DT) 0953 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
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