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| The Tax Publishers2020 TaxPub(DT) 2019 (Pune-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where AO in its assessment order had held that assessee filed inaccurate particulars and initiated penalty proceedings, however AO imposed penalty under section 271(1)(c) for concealment of income which was evident from penalty order, therefore, the imposition of penalty was contrary to the findings of AO and was liable to be deleted.
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Penalty under section 271(1)(c) - Defective notice - Notice issued by AO without specifying grounds of penalty -
AO recorded its satisfaction in assessment order that assessee filed inaccurate particulars and initiated penalty proceedings by issuing show cause notice under section 271(1)(c) for filing inaccurate particulars of income. Assessee contended that notice issued under section 274 did not specify the grounds on which penalty was imposed i.e. whether for concealment of income or for furnishing inaccurate particulars.Held: AO in its assessment order had held that assessee filed inaccurate particulars and initiated penalty proceedings by issuing show cause notice under section 271(1)(c) for filing inaccurate particulars of income. However it was noted that AO imposed penalty under section 271(1)(c) for concealment of income which was evident from penalty order. Therefore, the imposition of penalty was contrary to the findings of AO in assessment proceedings and penalty imposed by AO was not justified.
Followed:T. Ashok Pai v. CIT (2007) 292 ITR 11 (SC) : 2007 TaxPub(DT) 1251 (SC), CIT v. Shri Samson Perinchery (2017) 392 ITR 4 (Bom) : 2017 TaxPub(DT) 672 (Bom-HC) and CIT & Ors. v. Manjunatha Cotton and Ginning Factory & Ors. 2013 TaxPub(DT) 2014 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 20011-12
INCOME TAX ACT, 1961
Section 68
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