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| The Tax Publishers2020 TaxPub(DT) 2568 (Gau-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where AO had not stricken out the irrelevant portion of the fault/charge in the penalty notice issued under section 274 read with section 271, which would have spelt out the specific fault/charge against the assessee as per section 271(1)(c), the said notice itself was defective, and hence, the penalty levied under section 271(1)(c) would not be sustainable.
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Penalty notice under section 271(1)(c) - Leviability - Defective notice - Non-specification of particular charge
AO issued show cause notice under section 274 proposing to levy penalty against assessee under section 271(1)(c) for concealment of particulars of income and furnishing of inaccurate particulars of income. Accordingly penalty order was passed levying penalty under section 271(1)(c) against the assessee. Held: AO himself in the penalty order clearly stated that he issued show cause notice under section 274 read with section 271 for concealment of particulars of income and furnishing of inaccurate particulars of income, thus, the show cause notice itself was invalid in the eyes of law. Therefore, as the AO had not stricken out the irrelevant portion of the fault/charge in the penalty notice, which would have spelt out the specific fault/charge against the assessee as per section 271(1)(c), the said notice was defective, and hence, the penalty levied under section 271(1)(c) would not be sustainable.
Followed:Jeetmal Choraria v. Asstt. CIT [ITA No. 956/Kol/2016, dt. 1-12-2017] : 2018 TaxPub(DT) 0062 (Kol-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, GUWAHATI BENCH
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