INCOME TAX ACT, 1961

Section 271(1)(c)

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

AO imposed penalty under section 271(1)(c) upon assessee-company. It was submitted on behalf of the assessee that the penalty notice issued under section 274 read with section 271(1)(c), was vague and non-specific as there was no specific charge in it specifying as to whether the assessee had concealed its income and/or had furnished inaccurate particulars of income. Held: A bare perusal of the notice issued under section 274 read with section 271(1)(c) proved that assessee had not been called upon to explain if it had concealed the particulars of income or furnished inaccurate particulars of such income. Therefore, when the assessee had not been specifically made aware of the charges levelled against it as to whether there was concealment of income or furnishing of inaccurate particulars of income on its part, the penalty under section 271(1)(c) would not be sustainable.

Followed:CIT & Ors. v. Manjunatha Cotton And Ginning Factory & Ors. 2014 TaxPub(DT) 0202 (Karn-HC)

REFERRED : Pr. CIT & Others v. Sahara India Life Insurance Company, Ltd. 2019 TaxPub(DT) 6933 (Del-HC)

FAVOUR : In assessee's favour

A.Y. : 2000-01

INCOME TAX ACT, 1961

Section 271(1)(c)

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