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2018 (7) TMI 60 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - Invalid notice - non striking off inapplicable portion in the notice - Held that:- We are of the considered view that the AO has initiated penalty u/s 271(1)(c) by issuing show cause notice u/s 274 without striking off inapplicable portion in the notice. Therefore, it is a clear case of non application of mind by the AO as to whether penalty has been initiated for furnishing of inaccurate particulars of income or concealment of particulars of income. Even in the penalty order, the AO has levied penalty under Explanation 1 to section 271(1)(c) which is applicable for deemed concealment of particulars of income. AO was not clear while initiating penalty u/s 271(1)(c) and hence, the whole penalty proceedings is vitiated and consequently, penalty levied by the AO u/s 271(1)(c) cannot survive. - Decided in favour of assessee.
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