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2019 (8) TMI 1123 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - show cause notice has not struck off the irrelevant portion as to whether the charge against the assessee is “concealing particulars of income” or “furnishing of inaccurate particulars of income” - HELD THAT:- Evidently the show cause notice u/s. 274 r.w.s 271 of the Act dated 24.12.2009 issued for Assessment Year 2007-08 is defective as it does not spell out the grounds on which the penalty is sought to be imposed The Hon’ble Karnataka High Court in the case of CIT vs. SSA's Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] wherein following its own decision in the case of CIT vs Manjunatha Cotton and Ginning factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] took a view that imposing of penalty u/s 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income. Show cause notice issued in the case on hand under section 271(1)(c) does not specify the charge against the assessee as to whether it is for “concealing particulars of income” or “furnishing inaccurate particulars of income”. The show cause notice under section 271(1)(c) does not strike out the inappropriate words .Imposition of penalty cannot be sustained. - Decided in favour of assessee.
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