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| The Tax Publishers2020 TaxPub(DT) 4128 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where notice issued under section 274 read with section 271(1)(c) did not specify that under which limb of section 271(1)(c), the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars of income, the penalty levied under section 271(1)(c) was not justified and hence, the same was liable to be deleted.
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Penalty under section 271(1)(c) - Leviability - Defective notice - Non-specification of charge
AO levied penalty under section 271(1)(c). Assessee submitted that it was not clear from assessment order as well as from penalty notice that whether the penalty had been initiated / levied for furnishing inaccurate particulars of income or concealment of particulars of income. Therefore, the penalty levied under section 271(1)(c) was not justified. Held: Notice issued under section 274 read with section 271(1)(c) did not specify that under which limb of section 271(1)(c), the penalty proceedings had been initiated, i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. Further, the AO in the assessment order also, did not record any satisfaction as to for which limb of section 271 (1)(c), the penalty proceedings had been initiated. Therefore the penalty levied under section 271(1)(c) was not justified and hence, the same was deleted.
REFERRED : Pr. CIT & Ors. v. Sahara India Life Insurance Company Ltd. [ITA.No.475/2019, dt. 2-8-2019] : 2019 TaxPub(DT) 6933 (Del-HC) CIT v. SSA's Emerald Meadows (2016) 73 Taxman.com 241 (Kar) : 2018 TaxPub(DT) 0953 (Karn-HC) CIT & Anr. v. SSA's Emerald Meadows (2016) 73 taxmann.com 248 (SC) : 2016 TaxPub(DT) 4242 (SC)
FAVOUR : In assessee's favour
A.Y. : 1996-97
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