The Tax Publishers2019 TaxPub(DT) 4102 (Del-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

In the absence of any specific change in penalty notice or in assessment order, i.e., whether assessee was guilty of concealment of income or furnishing of inaccurate particulars thereof, levy of penalty could not be sustained.

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Non-mention of particular charge -

AO disallowed business loss claimed by assessee and accordingly levied penalty under section 271(1)(c). Assessee challenged this on the ground that there was no specific charge of offence against assessee. Held: Though AO had recorded satisfaction for initiation of penalty proceedings under section 271(1)(c), he had not specified whether it was for concealment of income or for furnishing of inaccurate particulars of income. In penalty notice, AO had mentioned 'have concealed particulars of your income or furnished inaccurate particulars of such income'. Thus, notice was totally vague and no specific charge was pointed out, Even in the whole body of assessment order, no satisfaction had been recorded for initiating penalty proceedings. Only at the end of computation of income, AO has recorded 'Keeping in view the facts of case, I am satisfied that it warrants initiation of penalty proceedings under section 271(1)(c)'. Thus, no particular charge was specified either in assessment order or in penalty notices. Accordingly, levy of penalty was not lawful.

Followed:The CIT & Ors. v. M/s. Manjunatha Cotton and Ginning Factory & Oths., M/s. V.S. Lad & Sons, (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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