|The Tax Publishers2020 TaxPub(DT) 5372 (Ctk-Trib)
INCOME TAX ACT, 1961
For AO to assume jurisdiction under section 271(1)(c), proper notice is necessary and the defect in notice under section 274 vitiates the assumption of jurisdiction by AO to levy any penalty.
Penalty under section 271(1)(c) - Notice under section 274 - Notice not specifying charge on which penalty sought to be imposed -
AO imposed penalty under section 271(1)(c) for concealment of income and for furnishing inaccurate particulars of income in respect of addition made under section 68 towards introduction of share capital. Held: AO was not clear under which limbs of provisions penalty was imposed because in the show cause notice issued under section 274 , AO did not specify the charge against the assessee as to whether it was for concealment of particulars of income or for furnishing inaccurate particulars of income. Therefore, the penalty imposed was not exigible.
FAVOUR : In favour of assessee
A.Y. : 2010-11
IN THE ITAT, CUTTACK BENCH
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