| The Tax Publishers2020 TaxPub(DT) 5100 (Kol-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where AO issued notice under section 274 read with section 271(1)(c) for both the charges as envisaged under section 271(1)(c); it was not clear as to whether the assessee concealed particulars of income or furnished inaccurate particulars of income and hence, the said show cause notice proposing levy of penalty under section 271(1)(c) was defective and consequently levy of penalty was bad in law and accordingly, the penalty was liable to be deleted.
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Penalty under section 271(1)(c) - Leviability - Defective notice - Non-specification of charge
AO levied penalty under section 271(1)(c). It was submitted on behalf of assessee that in notice issued under section 274 read with section 271(1)(c), the AO had not struck out charge/fault, which were not applicable in case of the assessee, i.e., whether the assessee concealed the particulars of its income or it furnished inaccurate particulars of such income. Since both the charges were given in the notice, the said notice was invalid and therefore, all consequential actions initiated on an invalid notice were bad in law. Held: Since AO issued notice under section 274 read with section 271(1)(c) for both the charges as envisaged under section 271(1)(c); it was not clear as to whether the assessee concealed particulars of income or furnished inaccurate particulars of income and hence, the said show cause notice proposing levy of penalty under section 271(1)(c) was defective and consequently levy of penalty was bad in law and accordingly, the penalty was deleted.
Relied:CIT v. M/s. SSA's Emerald Meadows [ITA No. 380 of 2015, dated 23-11-2015] : 2018 TaxPub(DT) 0953 (Karn-HC).
REFERRED : Pr. CIT v. D.R. Murari Mohan Koley [ITAT No. 306 of 2017, G.A. No. 2968 of 2017, dated 18-7-2018] : 2018 TaxPub(DT) 5631 (Cal-HC) CIT v. Samson Perinchery ITA No. 1154 of 2014, dated 5-1-2017 : 2017 TaxPub(DT) 0672 (Bom-HC), CIT & Ors. v. M/s. Manjunatha Cotton and Ginning Factory & Ors. (2013) 359 ITR 565 (Kar) : 2014 TaxPub(DT) 0202 (Karn-HC), Jeetmal Choraria v. ACIT [ITA No. 956/Kol/2016 for assessment year 2010-11, dated 1-12-2017] : 2018 TaxPub(DT) 0062 (Kol-Trib) and Suvaprasanna Bhatacharya v. ACIT [ITA No. 1303/Kol/2010, dated 6-11-2015] : 2015 TaxPub(DT) 5064 (Kol-Trib) .
FAVOUR : In assessee's favour
A.Y. : 2012-13
IN THE ITAT, KOLKATA BENCH
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