INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Leviability - Defective notice - Non-specification of charge

AO levied penalty under section 271(1)(c). Assessee contended that the AO failed to strike off irrelevant default in the penalty notice issued under section 274 read with section 271, therefore, the penalty levied under section 271(1)(c) would not be sustainable. Held: On perusal of penalty notice issued under section 274 read with section 271, it stood revealed that the AO failed to strike off the irrelevant default in the notice. Thus, the AO clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regard the default for which he was being proceeded against, accordingly, the penalty under section 271(1)(c) imposed was clear violation of the mandate of section 274(1) and hence, such penalty was deleted.

REFERRED : T Ashok Pai v. CIT (2007) 292 ITR 11 (SC) : 2007 TaxPub(DT) 1251 (SC) Dilip N. Shroff v. Jt. CIT & Anr. (2007) 210 CTR (SC) 228 : 2007 TaxPub(DT) 1247 (SC) The CIT-11 v. Shri Samson Perinchery (ITA No. 1154 of 2014; dated 5-1-2017)(Bom) : 2017 TaxPub(DT) 0672 (Bom-HC) CIT, Bangalore and The ITO, Ward-6 (3), Bangalore v. M/s. SSA'S Emerald Meadows (2018) 73 taxmann.com 241 (Kar) : 2018 TaxPub(DT) 0953 (Karn-HC) The CIT & Oths. v. M/s. Manjunatha Cotton and Ginning Factory & Oths., M/s. V.S. Lad & Sons, (2013) 359 ITR 565 (Kar) : 2014 TaxPub(DT) 0202 (Karn-HC) M/s. Orbit Enterprises v. ITO-15 (2) (2) (ITA No. 1596 & 1597/Mum/2014, dated 1-9-2017) : 2017 TaxPub(DT) 5075 (Mum-Trib) CIT & Anr. v. M/s. SSA'S Emerald Meadows (2016) 73 taxmann.com 248 (SC) : 2016 TaxPub(DT) 4242 (SC)

FAVOUR : In assessee's favour

A.Y. :

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