Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1350 - ITAT RAJKOTPenalty u/s.271(1)(c) - legality of notice issued u/s.274 r.w.s 271(1)(c) - Held that:- AO has not struck off either of one reason and has issued notice taking both the basis of imposing penalty by alleging that the assessee has concealed the particulars of income as well as furnishing inaccurate of income. Further in the penalty order framed u/s.271(1)(c) of Act Ld.AO has again quoted both the reasons i,e concealment of particulars of income and furnishing of inaccurate particulars of income for penalizing the assessee u/s.271(1)(c) of the Act. It can be inferred that Ld.AO was unable to make complete application of mind to assess the basis of imposing the penalty. Further Revenue, has been unable to prove that the impugned notice is not impaired or prejudice to the right of assessee for providing reasonable opportunity of being heard in order to defend its case for the specific reason for which penalty is imposed. Thus notice issued u/s.274 r.w.s 271(1)(c) of the Act, issued in the case of assessee was illegal and bad in laws as it is not specifying particular charge on which the penalty has been imposed i.e for concealment of particulars of income or furnishing inaccurate particulars on income and is therefore liable to be quashed. - Decided in favour of assessee.
|