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| The Tax Publishers2020 TaxPub(DT) 5405 (Hyd-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where notice under 274 read with section 271(1)(c) was issued by AO without striking off the irrelevant portion in the notice, i.e., whether the penalty is being levied for concealment of income or for furnishing of inaccurate particulars or for both, penalty levied under section 271(1)(c) would be cancelled.
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Penalty under section 271(1)(c) - Notice under section 274 - Specification of irrelevant portion -
Assessee was in appeal challenging the validity of notice issued under section 271(1)(c), as AO had not mentioned in which limb the penalty under section 274 read with section 271(1)(c) was leviable. Held: Assessment order was passed ex-parte and the CIT(A) and AO had not mentioned any reason for initiating the penalty under section 271(1)(c). Further, as seen from the copy of the notice issued under section 274 read with section 271(1)(c), AO had not struck-off the irrelevant portion in the notice, i.e., whether the penalty is being levied for concealment of income or for furnishing of inaccurate particulars or for both. In view of the same, following the decision of the in the case of CIT v. SSA's Emerald Meadows [(SLP No. 11485/2016 dt. 05-08-2016) : 2016 TaxPub(DT) 4242 (SC)] and case of Pr.CIT v. Baisetty Revathi [ITA No.684 of 2016, dt. 13-7-2017 : 2017 TaxPub(DT) 1915 (Hyd-HC)], the penalty order passed by the AO was set aside.
REFERRED : CIT v. SSA's Emerald Meadows [(SLP No. 11485/2016 dt. 05-08-2016) : 2016 TaxPub(DT) 4242 (SC)] and Pr.CIT v. Baisetty Revathi [ITA No.684 of 2016, dt. 13-7-2017 : 2017 TaxPub(DT) 1915 (Hyd-HC)].
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, HYDERABAD BENCH
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