INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Notice under section 274 - Notice not specify grounds on which penalty sough to be imposed -

AO initiated penalty proceedings under section 271(1)(c) alleging that assessee had not disclosed certain amount in the return of income filed under section 139(1), but disclosed in the return filed under section 153A. Assessee submitted that as the SCN issued under section 274 before imposing penalty did not contain the specific charge as to whether the assessee was guilty of having concealed particulars of income or having furnished inaccurate particulars of income, imposition of penalty was bad in law and invalid. Held: Since the notice issued under section 274 did not specify the specific charge of concealment or furnishing inaccurate particulars of income against assessee, therefore, that omission would vitiates the notice issued before penalty and subsequent proceedings thereafter. Hence, penalty imposed by AO was deleted.

Followed:Jeetmal Choraria v. A.C.I.T., Circle-43, [ITA No. 956/Kol/2016 ] : 2018 TaxPub(DT) 0062 (Kol-Trib)

REFERRED : Maharaj Garage & Company v. CIT 2018 TaxPub(DT) 0471 (Bom-HC),CIT v. Shri Samson Perinchery [ITA No.1154 of 2014 dt. 5-1-2017] : 2017 TaxPub(DT) 0672 (Bom-HC),CIT v. SSA's Emerald Meadows in ITA No. 380 of 2015 dt. 23-11-2015- Karnataka High Court : 2018 TaxPub(DT) 0953 (Karn-HC),CIT v. Manjunatha Cotton and Ginning factory (2013) 359 ITR 565- Karnataka High Court : 2014 TaxPub(DT) 0202 (Karn-HC),Syamal Baran Mondal v. CIT (2011) 244 CTR 631 (Cal) : 2011 TaxPub(DT) 2080 (Cal-HC),CIT and Asst. CIT v. Veerabhadrappa Sangappa [ITA NO 5020 of 2009, dt. 17-3-2010],CIT v. Kaushalya & Ors. (1995) 216 ITR 660 (Bom) : 1995 TaxPub(DT) 0109 (Bom-HC),CIT v. Mithila Motor's (P.) Ltd. (1984) 149 ITR 751 (Patna) : 1984 TaxPub(DT) 0710 (Pat-HC) ,Earthmoving Equipment Service Corporation v. Dy. CIT (2017) 84 Taxmann.com 51 (Mum) : 2017 TaxPub(DT) 1242 (Mum-Trib),Dhanraj Mills Pvt. Ltd. v. ACIT [ITA No.3830 & 3833/Mum/2009 dt. 21-3-2017],Mahesh M. Gandhi, Mumbai v. Asst. CIT [ITA No.2976/Mum/2016 dt. 27-2-2017],Trishul Enterprises v. ACIT [ITA No.384 & 385/Mum/2014],Suvaprasanna Bhattacharya v. ACIT in ITA No.1303/Kol/2010 dt. 6-11-2015- ITAT Kolkata : 2015 TaxPub(DT) 5064 (Kol-Trib),CIT & Anr. v. SSA'S Emerald Meadows [Special Leave to Appeal (C)....../2016 (CC No.11485/2016), dt. 5-8-2016] : 2016 TaxPub(DT) 4242 (SC)

FAVOUR : In assessee's favour

A.Y. : 2008-09 and 2011-12

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