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| The Tax Publishers2020 TaxPub(DT) 4320 (Ctk-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where penalty notice issued under section 274 read with section 271(1)(c) did not specify as to under which limb of the provisions, the penalty under section 271(1)(c) had been initiated, i.e., whether it was for concealing particulars of income or for furnishing inaccurate particulars of income, such penalty notice was bad in law and hence, the penalty levied under section 271(1)(c) 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). It was contended on behalf of assessee that show cause notice issued under section 274 read with section 271(1)(c) did not specify the charge against the assessee as to whether it was for concealing particulars of income or for furnishing inaccurate particulars of income, therefore, the penalty order passed under section 271(1)(c) was not valid.Held: It was found that inappropriate words in penalty notice issued under section 274 read with section 271(1)(c) had not been struck off and the said notice did not specify as to under which limb of the provisions, the penalty under section 271(1)(c) had been initiated, i.e., whether it was for concealing particulars of income or for furnishing of inaccurate particulars of income, such penalty notice was bad in law and hence, the penalty levied under section 271(1)(c) was deleted.
REFERRED : CIT & Ors. v. Manjunatha Cotton & Ginning Factory & Ors. (2014) 35 Taxmann.com 250 (Karn) : (2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC) and 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. : 2010-11 & 2011-12
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