INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty notice under section 271(1)(c) - Leviability - Defective notice - Non-specification of particular charge

Penalty under section 271(1)(c) was levied against assessee. Assessee contended that the penalty notice issued under section 274 read under section 271 did not specify the charge for which penalty was levied under section 271(1)(c), whether for concealment of income or for furnishing of inaccurate particulars of income, therefore, the penalty levied under section 271(1)(c) was unsustainable. Held: From perusal of penalty notice issued under section 274 read with section 271, it was clear that the charge was not specific for which penalty was levied under section 271(1)(c), whether for concealment of income or for furnishing of inaccurate particulars of income. Further, the notice specified both charges, i.e., concealment of income and furnishing of inaccurate particulars of income and did not specify the charge for which action had been taken against assessee. It is a settled position that if notice under section 274 read with 271(1)(c) is not specific about the charge or limb under which penalty is being levied under section 271(1)(c), then any penalty levied on the basis of such notice is bad in law and liable to be deleted. Hence the penalty levied under section 271(1)(c) was deleted.

Relied:Meherjee Cassinath Holdings Private Limited v. ACIT [ITA No. 2555/MUM/2012, Order, dated 28-4-2017] : 2017 TaxPub(DT) 1239 (Mum-Trib), 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), The Commissioner & Oths. v. M/s. Manjunatha Cotton and Ginning Factory & Oths., M/s. V.S. Lad & Sons (2013) 359 ITR 565 (Karn.) : 2014 TaxPub(DT) 0202 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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