2018 (4) TMI 1429 - ITAT DELHI - Income Tax

Head Note / Extract:
Penalty u/s 271(1)(c) - cash found during the search and additional income declared in the revised return - notice issued against deceased - defective notice - Held that:- The assessee has himself declared income into the return of income before issuing the notice u/s. 153A. Therefore, there is no concealment of any income. Even the Assessing Officer has not made addition on this score. Therefore, the penalty cannot be levied. In the penalty notice dated 29.12.2009, it has not been mentioned as to for which limb of section 271(1)(c), the notice was issued. The penalty order has been passed without assuming proper jurisdiction as per provisions of the Income-tax Act, in the name of legal heirs. All the notices were issued in the name of late MV Rao whereas the information regarding his death was submitted on 14.10.20111. No material on record before us to show that any notice for penalty was issued to the legal heir of late M.V. Rao before imposing penalty against such legal heir. On this aspect of the case also, we do not find any justification to sustain the penalty imposed against the legal heir of late M.V. Rao - Decided in favour of assessee.