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| The Tax Publishers2020 TaxPub(DT) 1961 (Gau-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where penalty notice issued under section 274 did not specify as to whether the penalty proceedings were sought to be levied for 'furnishing inaccurate particulars of income' or 'concealing particulars of such income', such penalty notice would be considered as bad in law 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
AO made addition on account of undisclosed purchases vis-a-vis sales and corresponding profit. Subsequently, he imposed penalty under section 271(1)(c). Assessee contended that the penalty notice nowhere specified as to whether the same involved concealment of income or furnishing of inaccurate particulars of income and hence, the penalty would not be sustainable. Held: Since penalty notice issued under section 274 did not specify as to whether the penalty proceedings were sought to be levied for 'furnishing inaccurate particulars of income' or 'concealing particulars of such income', such penalty notice would be considered as bad in law and hence, the penalty levied under section 271(1)(c) would not be sustainable.
Followed:Nishith Kumar Jain v. ACIT in ITA No. 961-964/Kol/2013 decided on 10-2-2016
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, GAUHATI BENCH
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