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The Tax Publishers Siddhartha Jalan v. ACIT [ITA No. 1004/Kol/2013, dt. 19-4-2016] : 2016 TaxPub(DT) 2196 (Kol-Trib) Concealment penalty with defective show cause *Facts: Assessee was found to have received bogus gifts, thus additions were made on which appeals were not filed to buy peace. The assessing officer/Commissioner (Appeals) upheld levy of concealment penalty. The show cause of such penalty under section 274 did not even specify the cause why penalty was levied. Thus the penalty was contested in appeal to ITAT. Held in favour of the assessee that the show cause was defective and did not meet requirements of levy of penalty. Applied: " Suvaprasanna Bhattacharya v. ACIT in ITA 1303/Kol/2010, dated 6-11-2015* where the Tribunal has held that if the show cause notice under section 274 of the Act does not specify as to the exact charge viz., whether the charge is that the assessee has "furnished inaccurate particulars of income" or "concealed particulars of income" by striking out the irrelevant portion of printed show cause notice, than the imposition of penalty on the basis of such invalid show cause notice cannot be sustained. The requirements of section 274 since being a charge sheeting provision for levy of penalty has to be strictly construed.

The Tax Publishers

Siddhartha Jalan v. ACIT [ITA No. 1004/Kol/2013, dt. 19-4-2016] : 2016 TaxPub(DT) 2196 (Kol-Trib)

Concealment penalty with defective show cause

Facts:

Assessee was found to have received bogus gifts, thus additions were made on which appeals were not filed to buy peace. The assessing officer/Commissioner (Appeals) upheld levy of concealment penalty. The show cause of such penalty under section 274 did not even specify the cause why penalty was levied. Thus the penalty was contested in appeal to ITAT.

Held in favour of the assessee that the show cause was defective and did not meet requirements of levy of penalty.

Applied: " Suvaprasanna Bhattacharya v. ACIT in ITA 1303/Kol/2010, dated 6-11-2015 where the Tribunal has held that if the show cause notice under section 274 of the Act does not specify as to the exact charge viz., whether the charge is that the assessee has "furnished inaccurate particulars of income" or "concealed particulars of income" by striking out the irrelevant portion of printed show cause notice, than the imposition of penalty on the basis of such invalid show cause notice cannot be sustained.

The requirements of section 274 since being a charge sheeting provision for levy of penalty has to be strictly construed.