The Tax Publishers2019 TaxPub(DT) 0557 (Bang-Trib) : (2019) 070 ITR (Trib) 0472

INCOME TAX ACT, 1961

Section 271(1)(c)

Where AO had issued the notice of penalty without specifying the grounds on which the same was imposed, imposition of penalty was unjustified, because this being a mandatory requirement could not be construed as a mere technical error.

Penalty under section 271(1)(c) - Notice issued by AO without specifying grounds of penalty - Validity -

AO had imposed penalty under section 271(1)(c) on assessee, who assailed the same contending that notice issued under section 274 did not specify the grounds on which penalty was imposed i.e. whether for concealment of income or for furnishing inaccurate particulars. Revenue rejected contention of assessee holding that penalty could not be deleted merely because of a technical error in the show cause notice. Held: From perusal of notice, it was very much obvious that AO did not specify the grounds on which penalty was imposed. AO was required to specify that on which limb of section 271(1)(c), the penalty proceedings were initiated, i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. The notice in fact was in standard pro forma without the irrelevant clauses therein being struck off. Thus, penalty was deleted.

Followed:CIT & ANR. v. M/s. SSA'S Emerald Meadows in (Special Leave to Appeal (C)....../2016 (CC No. 11485/2016), dt. 5-8-2016) T Ashok Pai v. CIT (2007) 210 CTR 259 (SC) : 2007 TaxPub(DT) 1251 (SC) National Thermal Power Company Ltd. v. CIT (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC) CIT, Bangalore & The Income Tax Officer, Ward-6 (3), Bangalore v. M/s. SSA'S Emerald Meadows in (I.T.A. N O . 380 of 2015, dt. 23-11-2015 : 2018 TaxPub(DT) 0953 (Karn-HC)) The CIT & Ors. v. M/s. Manjunatha Cotton & Ginning Factory & Oths., M/s. V.S. Lad & Sons, (2013) 359 ITR 565 (Karn-HC) : 2014 TaxPub(DT) 202 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



IN THE ITAT, BANGALORE BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com