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| The Tax Publishers2019 TaxPub(DT) 4154 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where in show cause notice, both limbs of section 271(1)(c) were mentioned, notice was invalid and bad in Law resulting into vitiating entire penalty proceedings.
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Penalty under section 271(1)(c) - Leviability - Defective show-cause notice -
AO observing that assessee had utilised client code modification as a tool for booking of losses to set-off its income so earned from real estate business disallowed assessee's claim. AO initiated penalty proceedings under section 271(1)(c) for furnishing inaccurate particulars of income and vide separate order levied penalty under section 271(1)(c) on this addition holding that assessee had 'deliberately concealed the particulars of income'. Held: AO had initiated penalty proceedings for furnishing inaccurate particulars of income. However, levied penalty for concealing particulars of income. In show cause notice, both limbs of section 271(1)(c) were mentioned. Therefore, notice was invalid and bad in Law, which resulted into vitiating entire penalty proceedings. Satisfaction of AO was also defective. Therefore, no penalty was leviable.
Followed:Shri Amardeep Dalal v. ACIT [ITA.Nos.3539 and 3540/Del./2015, dt. 6-2-2019], CIT v. M/s. SSA's Emerald Meadows (2018) 73 taxmann.com 241 (Karn) : 2018 TaxPub(DT) 0953 (Karn-HC), CIT & Anr. v. M/s. SSA's Emerald Meadows (2016) 73 taxmann.com 248 (SC) : 2016 TaxPub(DT) 4242 (SC),
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2009-10
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