INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of in accurate particulars of income - Defective notice -

AO Levied penalty under section 271(1)(c) for furnishing inaccurate particulars of income. Assessee relying on the decision of in the case of Pr. CIT v. Sahara India Life Insurance Co. Ltd. (2021) 432 ITR 84 (Del) : 2019 TaxPub(DT) 6933 (Del-HC) submitted that the show-cause notice for levy of penalty issued by the AO was illegal and bad in law as notice issued did not specify as to whether the proceedings were initiated for concealment of particulars of income or for furnishing of inaccurate particulars of income, therefore, notice was liable to be quashed. Held: In the case of Pr. CIT v. Sahara India Life Insurance Co. Ltd. .(2021) 432 ITR 84 (Del) : 2019 TaxPub(DT) 6933 (Del-HC), after considering the decision in the case of CIT v. Manjunatha Cotton & Ginning Factory (2013) 359 ITR 565 (Kar) : 2014 TaxPub(DT) 0202 (Karn-HC) & CIT v. SSA's Emerald Meadows (2016) 73 Taxman.com 241 (Kar) : 2018 TaxPub(DT) 0953 (Karn-HC) (whereagainst the SLP filed by Revenue was dismissed and decision of apex court reported in (2016) 386 ITR (ST) 13 (SC) : 2016 TaxPub(DT) 4242 (SC)) had held that penalty under section 271(1)(c) was not leviable when the notice issued by AO did not specify as to whether the proceedings were initiated for concealment of particulars of income or for furnishing of inaccurate particulars of income . Accordingly order of penalty was set aside.

Followed:Pr. CIT v. Sahara India Life Insurance Co. Ltd. .(2021) 432 ITR 84 (Del) : 2019 TaxPub(DT) 6933 (Del-HC), CIT v. Manjunatha Cotton & Ginning Factory (2013) 359 ITR 565 (Kar) : 2014 TaxPub(DT) 0202 (Karn-HC) and 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. :

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