Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 716 - ITAT MUMBAIPenalty u/s. 271(1)(c) - ineligible notice - notice issued under section 274 r.w.s. 271 is a stereotype one – not tick marked for which limb of the two limbs to section 271(1)(c) the penalty is initiated - Held that:- Notice issued under section 274 must reveal application of mind by the Assessing Officer and the assessee must be made aware of the exact charge on which he had to file his explanation. The Court observed, vagueness and ambiguity in the notice deprives the assessee of reasonable opportunity as he is unaware of the exact charge he has to face. The Hon'ble Jurisdictional High Court in Samson Perinchery (2017 (1) TMI 1292 - BOMBAY HIGH COURT), following the decision in CIT v/s Manjunatha Cotton & Ginning Factory, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] held, order imposing penalty has to be made only on the ground on which the penalty proceedings has been initiated. In addition to the aforesaid binding judgments, there are several orders passed by co-ordinate Benches of the Tribunal on this very point. In all those orders also penalty levied u s. 271(l)(c) of the Act on the basis of similar vague notice was cancelled. Thus no merit for the penalty so imposed u/s. 271(1)(c) of the IT Act. - Decided in favour of assessee.
|