|The Tax Publishers2021 TaxPub(DT) 0025 (Mum-Trib)
INCOME TAX ACT, 1961
Where show cause notice issued under section 274 for imposing penalty under section 271(1)(c) was defective as it does not spell out the grounds on which penalty was sought to be imposed as such, the same was invalid since defect could not be said to be curable under section 292BB.
Penalty under section 271(1)(c) - Notice under section 274 - Notice not specifying grounds on which penalty sought to be imposed -
Assessee filed appeal against the order of CIT(A) passed under section 271(1)(c) on the ground that notice issued under sections 274 read with section 271 for levy of penalty was invalid and defective. Held: AO was not sure whether he was to proceed on the basis that the assessee has concealed the particulars of his income or furnished inaccurate particulars of income. In case of CIT v. Manjunatha Cotton And Ginning Factory & Ors. [(2013) 359 ITR 565 (Karn-HC) : 2014 TaxPub(DT) 202 (Karn-HC)] it was held that in such a situation, the levy of penalty suffers from non-application of mind. Considering the legal position and the action of AO in passing the penalty order under section 271(1)(c) shows that there was non-application of mind thereby the penalty order was not sustainable.
Followed:CIT v. Manjunatha Cotton And Ginning Factory & Ors. [(2013) 359 ITR 565 (Karn-HC) : 2014 TaxPub(DT) 202 (Karn-HC)].
FAVOUR : In favour of assessee.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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