Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 325 - ITAT LUCKNOWPenalty u/s 271(1)(c) - Defective notice u/s 274 - whether for concealment of income or for furnishing of inaccurate particulars of income? - HELD THAT:- The notice has specified both charges i.e. concealment of income and furnishing of inaccurate particulars of income and has not specified the charge for which action has been taken against assessee. The non specific nature of notice indicates non application of mind by AO. It is a settled position of law that if notice u/s 274 read with 271(1)(c) is not specific about the charge or limb under which penalty is being levied u/s 271(1)(c) of the Act, then any penalty levied on the basis of such notice is bad in law and liable to be deleted. The law mandates that the authority, who is proposing to impose penalty, shall be certain as to what basis penalty is being levied and notice must reflect that specific reason so that assessee, to whom such notice is given, can well prepare himself regarding defence, which he likes to take to support his case. This is even enshrined in the principles of natural justice and as has been upheld by Hon'ble Apex Court and other High Courts. In the present cases, unlike in the case of Sundram Finance Ltd [2018 (5) TMI 259 - MADRAS HIGH COURT] the assessee has taken this argument before learned CIT(A) and before us also whereas in Sundram Finance Ltd., the issue was raised for the first time before Hon'ble Supreme Court therefore, this case law is distinguishable from the facts of the present cases and therefore, is not applicable
|