The Tax Publishers2020 TaxPub(DT) 4038 (Bang-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Where AO in the notice issued under section 274 read with section did not specify as to whether it was for concealment of income or for furnishing of incorrect particulars of income, the notice was defective and, therefore, penalty levied on the basis of such notice could not be sustained.

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars of income - Non-mention of specific charge in penalty notice -

Assessee challenged penalty levied by AO under section 271(1)(c) on the ground of no mention of specific charge of offence against assessee in the penalty notice. AO took plea of specific allegation made by AO in the penalty/assessment order.Held: AO in the notice issued under section 274 read with section did not specify as to whether it was for concealment of income or for furnishing of incorrect particulars of income. Accordingly, the notice was defective because assessee had to submit reply in the course of penalty proceedings on the basis of allegation in the penalty notice only and not on the basis of allegation in the assessment order and therefore, even if specific allegation was made by AO in the assessment order, defect in penalty notice did not get rectified even under section 292B and penalty levied on the basis of such notice could not be sustained.

Distinguished:Asstt. CIT v. Sourastra Kutch Stock Exchange 262 ITR 166 (Guj).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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