The Tax Publishers2016 TaxPub(DT) 4981 (Kol-Trib)

 

Vaibhav Tulsyan v. ITO

 

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--Concealment or furnishing of inaccurate particularsNo specific ground mentioned in notice for imposition of penalty----Notice under section 274 not mentioning any specific ground, i.e., concealment or furnishing of inaccurate particulars for imposition of the penalty, ran against the principles of natural justice and, therefore, set aside.--AO sought to impose penalty under section 271(1)(c) on the basis of undisclosed income unearthed in the course of search at assessee's premises. According to the assessee, AO failed to spell out whether penalty was sought to be levied for furnishing of inaccurate particulars or concealment of income. Held: Assessee should know the specific ground for imposition of penalty otherwise, principles of natural justice are offended. Since penalty notice was not in conformity with the relevant provisions, same was set aside.

Income Tax Act, 1961, Section 271(1)(c)

Relied: CIT & Anr. v. Manjunatha Cotton and ginning Factory 359 ITR 565 (Karn).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2006-07 & 2007-08


 

INCOME TAX ACT, 1961

--Notice, etc., not to be invalid on certain grounds--Scope of Saving of section 271(l)(c) notice not mentioning whether for concealment or for inaccurate particular ----Where AO sought to impose penalty under section 271(1)(c) without mentioning any specific ground, i.e., concealment or furnishing of inaccurate particulars a notice with such a mistake was not saved under section 292B as the assessee was not informed of the ground for levy of penalty and same went against principle of natural justice. --AO sought to impose penalty under section 271(l)(c) on the basis of undisclosed income unearthed in the course of search at assessee's premises. According to the assessee, AO failed to spell out whether penalty was sought to be levied for furnishing of inaccurate particulars or concealment of income. According to AO, this defect was saved by section 292B. Held: Since penalty notice was not in conformity with the relevant provisions, assessee could not come to know the specific ground for imposition of the penalty and principles of natural justice were offended. Therefore, section 292B could not rescue the revenue and reliance of AO on the said provision was clearly misplaced.

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