INCOME TAX ACT, 1961

Section 271(1)(c)

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

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 proforma without the irrelevant clauses therein being struck off. Thus, penalty was deleted.

Followed:CIT & Anr. v. M/s. SSA'S Emerald Meadows [Special Leave to Appeal (CC No. 11485/2016)] : (2016) 73 taxmann.com 248 (SC) : 2016 TaxPub(DT) 4242 (SC) MAK Data (P) Ltd. v. CIT (2013) 38 taxmann.com 448 (SC) : (2013) 358 ITR 593 (SC) : (2013) 263 CTR 1 (SC) : 2013 TaxPub(DT) 2358 (SC) Dilip N. Shroff v. Jt. CIT & Anr. (2007) 291 ITR 519 (SC) : 2007 TaxPub(DT) 1247 (SC) KP Madhusudanan v. CIT (2001) 118 Taxman 324 (SC) : (2001) 251 ITR 99 (SC) : (2001) 169 CTR 489 (SC) : 2001 TaxPub(DT) 1585 (SC) CIT v. M/s. SSA'S Emerald Meadows 2018 TaxPub(DT) 0953 (Karn-HC) CIT & Ors. v. M/s. Manjunatha Cotton and Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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