INCOME TAX ACT, 1961

Section 271(1)(c) Section 274

Penalty under section 271(1)(c) - Defective notice issued under section 274 - Inappropriate part and words not deleted from notice issued to assessee -

It was contended by the assessee that penalty order passed by the AO was bad in law as the notice issued under section 274 did not specify whether the notice was issued for concealing the particulars of income or furnishing of inaccurate particulars of income. The penalty notice issued under section 271(1)(c) read with section 274 was as such, bad-in-law. Held: A perusal of the notice issued under section 274 read with section 271 dated 28-12-2010 reveals that the AO had not deleted the inappropriate words and parts of the notice, whereby it was not clear as to the default committed by the assessee, i.e., whether it is concealment of particulars of income or furnishing of inaccurate particulars of income that the penalty under section 271(1)(c) was sought to be levied. Such a notice, as had been issued in the present case, was invalid and the consequential penalty proceedings were also not valid.

Followed:Manjunatha (2014) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 202 (Karn-HC), CIT v. Samson Perinchery dated 5-1-2017 : 2017 TaxPub(DT) 672 (Bom-HC). Distinguished:K.P. Madhusuudhan (2001) 251 ITR 99 (Sc) : 2001 TaxPub(DT) 1585 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 10(4)(ii) Section 271(1)(c)

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