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| The Tax Publishers2020 TaxPub(DT) 0721 (Ind-Trib) INCOME TAX ACT, 1961
Section 271AAB
It was incumbent upon AO to mention in notice issued under section 274 read with section 271AAB as to under which clause of section 271AAB penalty was leviable and that too, at which rate. As AO failed to do so, penalty levied on the basis of such defective notice could not be sustained.
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Penalty under section 271AAB - Leviability - Defective notice issued by AO -
Assessee challenged penalty levied by AO under section 271AAB on the ground that in the notice issued under section 274 read with section 271AAB(3) there was no mention about various conditions provided under section 271AAB relating to levy of penalty @ 10% or 20% or 30% (as the case might be). Nothing was specified in the notice about clause a or b or c of section 271AAB as to at what percentage penalty would be levied on assessee for undisclosed income not surrendered during search proceedings. Held: It was incumbent upon AO to mention in notice issued under section 274 read with section 271AAB as to under which clause of section 271AAB penalty was leviable and that too, at which rate. As AO failed to do so, penalty levied on the basis of such defective notice could not be sustained.
Followed:Pr. CIT -- I v. Kulwant Singh Bhatia (2018) 304 CTR 0103 (MP) : 2018 TaxPub(DT) 2716 (MP-HC), Shri Ravi Mathur, v. The Dy. CIT, ITA No. 969/JP/2017 : 2019 TaxPub(DT) 3754 (Jp-Trib)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, INDORE BENCH
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