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| The Tax Publishers2019 TaxPub(DT) 3839 (Mum-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where AO had issued the notice of penalty without specifying the grounds on which the same was imposed, imposition of penalty was unjustified, because this being a mandatory requirement could not be construed as a mere technical error.
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Penalty under section 271(1)(c) - Validity - Notice issued by AO without specifying grounds of penalty -
The only issue raised by assessee was against the confirmation of penalty by CIT(A) as imposed by AO under section 271(1)(c) in respect of additional income declared by assessee during assessment proceedings after filing the return of income under section 153A. Held: From the perusal of the notice, it was very much obvious that AO did not specify the grounds on which penalty was imposed. AO was required to specify that on which limb of section 271(1)(c), the penalty proceedings were initiated, i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. The notice in fact was in standard pro forma without the irrelevant clauses therein being struck off. Thus, penalty was deleted.
REFERRED : CIT v. Piedade Perinchery ITA No. 1310 of 2014, dated 10-1-2017 CIT v. Shri Samson Perinchery (2017) 392 ITR 4 (Bom-HC) : 2017 TaxPub(DT) 0672 (Bom-HC) CIT v. M/s. SSA'S Emerald Meadows (2018) 73 taxmann.com 241 (Karn) : 2018 TaxPub(DT) 0953 (Karn-HC)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, MUMBAI BENCH
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