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| The Tax Publishers2020 TaxPub(DT) 0720 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where penalty notice issued under section 274 read with section 271(1)(c) did not specify as to under which limb of section 271(1)(c), the penalty proceedings were initiated, i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income, the said notice would be considered as void ab initio and hence, the penalty levied under section 271(1)(c) would not be sustainable.
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Penalty under section 271(1)(c) - Leviability - Defective notice - Non-specification of charge
Penalty under section 271(1)(c) was levied. Assessee contended that the penalty notice did not specify as to under which limb of section 271(1)(c), the penalty proceedings were initiated, i.e. whether for concealment of particulars of income or furnishing inaccurate particulars of income. Therefore, such notice was void ab initio and levy of penalty was unjustified. Held: It was found that in penalty notice issued under section 274 read with section 271(1)(c), the AO only mentioned, 'Have concealed particulars of income or furnished inaccurate particulars of income'. The said notice, thus, showed that the AO was not satisfied as to for which limb of section 271(1)(c), the penalty proceedings were initiated, i.e. whether for concealment of particulars of income or furnishing inaccurate particulars of income. Therefore, the said notice would be considered as void ab initio and hence, the penalty levied under section 271(1)(c) would not be sustainable.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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