The Tax Publishers2019 TaxPub(DT) 6627 (Luck-Trib) : (2019) 075 ITR (Trib) 0073

INCOME TAX ACT, 1961

Section 271(1)(c)

When the notice issued by AO under section 274 did not specify the charge or limb under which penalty had been imposed, penalty levied under section 271(1)(c) based on such notice was liable to be deleted.

Penalty under section 271(1)(c) - Leviability - Non-striking off of the irrelevant portion in the SCN -

AO levied penalty under section 271(1)(c). Assessee contended that since the notice under section 274 issued for levy of penalty did not specify the charge or limb, for which the penalty under section 271(1)(c) was proposed to be levied, therefore, any penalty levied on the basis of such a notice was bad in law and liable to be cancelled. Held: Since the SCN issued for levy of penalty did not specify the charge and limb under which the penalty was proposed to be levied, therefore, said notice was void ab initio and consequent penalty imposed on the basis of such notice was also illegal and bad in law. Hence, penalty under section 271(1)(c) levied by AO was liable to be deleted.

Relied on:CIT & Ors. v. M/s Manjunatha Cotton & Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC), Sri Chandra Prakash Bubna v. ITO (2015) 64 taxmann.com 155 (Kol) : 2015 TaxPub(DT) 5451 (Kol-Trib),CIT & Anr. v. M/s SSA'S Emerald Meadows (2016) 73 Taxmann.com 248 (SC) : 2016 TaxPub(DT) 4242 (SC)

REFERRED : Meherjee Cassinath Holdings Private Ltd. v. ACIT ITA No. 2555/Mum/2012, order dt. 28-4-2017 : 2017 TaxPub(DT) 1239 (Mum-Trib)

FAVOUR : In assessee's favour

A.Y. : 2014-15



IN THE ITAT, LUCKNOW BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com