Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1374 - AT - Income TaxLevying penalty u/s 271(1)(c) - notice was issued in a mechanical manner without application of mind as the AO failed to strike off the inappropriate words in the notice - HELD THAT:- The notice was issued in a standard format without any application of mind and the inappropriate/redundant words were not deleted by the AO. Thereafter, the penalty was imposed for concealment of particulars of income by invoking Exp 1 and 4 to section 271(1)(C) of the Act By these acts of the AO in not striking off the inappropriate limb in the notice is clear cut in violation of principle of natural justice as the assessee was deprived of reasonable opportunity to respond and deal with the particular charge on which the penalty was levied. In our view, the penalty order in such a scenario is clearly bad in law and can not be sustained. The case of the assessee is clearly supported by the decision relied upon by the assessee as stated hereinabove in the case of Shri Samson Perinchery vs. CIT [2017 (1) TMI 1292 - BOMBAY HIGH COURT] and CIT vs. Mrs. Piedade Perinchery (Bom-HC) [2017 (1) TMI 1458 - BOMBAY HIGH COURT] has held that where the AO has failed to state particularly the one of the two limbs on which the penalty was proposed to be levied then the penalty order would be bad in law as the assessee was not given proper opportunity to respond to the charge on which the penalty was levied. - Decided in favour of assessee.
|