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| The Tax Publishers2020 TaxPub(DT) 4851 (Kol-Trib) INCOME TAX ACT, 1951
Section 271AAB
Where AO in the show cause notice under section 274 read with section 271AAB failed to specify default and charge against assessee which necessitated levy of penalty under section 271AAB, penalty levied on the basis of such defective notice was deleted.
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Penalty under section 271AAB - Leviability - Non-mention of particular charge of offence in penalty notice -
AO, pursuant to search, conducted at assessee's premises, levied penalty under section 271AAB. Assessee challengd this on the ground of non-mention of particular charge of offence in penalty notice.Held: Even if AO was satisfied and come to the conclusion that assessee had not recorded undisclosed income in books of accounts or in other documents/record maintained in normal course relating to specified previous year, the show cause notice under section 274 read with section 271AAB must also specify the default committed by assessee to attract penalty @ 10% or 20% or 30% of undisclosed income. In the instant case, there was no dispute to the that fact the AO had not specified the default and charge against assessee which necessitated levy of penalty under section 271AAB and therefore, levy of penalty on the basis of such defective notice could not be upheld.
Relied:Rashmi Jalan v. Asstt. CIT [ITA No. 326/Kol/2020 for the assessment year 2013-14 order dt. 30-9-2020].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, KOLKATA BENCH
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