|The Tax Publishers2020 TaxPub(DT) 5394 (Del-Trib)
INCOME TAX ACT, 1961
Where assessment order passed by AO was not clear as to whether the penalty was leviable for concealment of income or for furnishing inaccurate particulars of income and the notice issued by AO under section 271(1)(c) was also silent, the penalty order passed under section 271(1)(c) could not survive and was required to be deleted.
Penalty under section 271(1)(c) - Notice under section 274 - Notice not specifying grounds on which penalty sought to be imposed -
AO initiated penalty proceedings stating that assessee was liable for penalty under section 271(1)(c) for concealing and furnishing inaccurate particulars of his income. Held: The notice issued by AO under section 271(1)(c) was silent. Even otherwise in the assessment order passed, the AO was not clear whether the penalty was leviable for concealment of income or for furnishing of inaccurate particulars of income. Thus, it was not discernable clearly in which limb the assessee was to be penalized and therefore, penalty order was to be deleted.
Followed:Pr. CIT & Ors. v. Sahara India Life Insurance Company Ltd. 2019 TaxPub(DT) 6933 (Del-HC), CIT v. SSA'S Emerald Meadows 2018 TaxPub(DT) 953 (Karn-HC), CIT & Ors. v. Manjunatha Cotton & Ginning Factory & Ors. 2013 TaxPub(DT) 2014 (Karn-HC) and CIT v. Virgo Marketing (P) Ltd. (2008) 171 Taxmann 156 (Del) : 2008 TaxPub(DT) 1518 (Del-HC).
FAVOUR : In favour of assessee.
A.Y. : 2009-10
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