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| The Tax Publishers2021 TaxPub(DT) 1290 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where show-cause notice issued under section 274 for imposing penalty under section 271(1)(c) was defective as it did not spell out the grounds on which penalty was sought to be imposed, as such, the same was invalid since defect could not be curable under section 292BB.
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Penalty under section 271(1)(c) - Notice under section 274 - Notice not specifying grounds on which penalty sought to be imposed. -
Assessee filed appeal against the penalty levied under section 271(1)(c) on the ground that notice issued under section 274 was bad in law and void ab initio as the notice prima facie did not satisfy the condition as to under which limb of section 271(1)(c) the penalty had been levied i.e. either for concealment of income or for furnishing of inaccurate particulars of income. Held: In the case of CIT v. Manjunatha Cotton and Ginning Factory [(2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC)], it was held that notice under section 274 should specifically state the grounds mentioned in section 271(1)(c), i.e., whether it is for concealment of income or for furnishing of inaccurate particulars of income. Since the notice under section 274 has not been specified as to whether penalty is proposed for alleged 'concealment of income' OR 'furnishing of inaccurate particulars of such income', the penalty levied was obliterated.
Followed:CIT v. Manjunatha Cotton and Ginning Factory [(2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC)].
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2004-05
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