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2017 (10) TMI 538 - AT - Income TaxImposition of penalty under section 271(1)(c) - no satisfaction recorded by AO - Held that:- As noticed that the Assessing Officer has simply mentioned “penalty proceedings under section 271(1)(c) of the I.T. Act are initiated separately”. There is no satisfaction recorded by the Assessing Officer whether the assessee has concealed the particulars of income or has furnished inaccurate particulars of income. Even, in the show cause notice issued under section 274 of the Act on 22nd December 2010, which is in printed format the Assessing Officer has not specified which limb of section 271(1)(c) of the Act he intends to apply for imposing penalty by striking off inappropriate words or paragraph. In that view of the matter and applying the ratio laid down in the decisions relied upon by the learned Authorised Representative, we hold that imposition of penalty under section 271(1)(c) of the Act in the instant case is not justified. Accordingly, we delete the penalty. Penalty under section 271AAA - no show cause notice under section 274 as mandated under sub–section (4) of section 271AAA was issued to the assessee - Held that:- When the provision contained under section 271AAA mandates issuance of notice under section 274 of the Act before imposition of penalty, the statutory authority being bound by such statutory provision has to act accordingly and cannot deviate therefrom. In our considered view, non–issuance of notice under section 274 is a serious lapse and jurisdictional error as in the absence of such notice, the Assessing Officer could not have proceeded to impose penalty under section 271AAA of the Act. Therefore, the defect arising from non–issuance of notice under section 274 r/w section 271AAA is not a curable defect as provided under section 292B. In view of the aforesaid, we delete the penalty imposed under section 271AAA of the Act.
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