Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 449 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - disallowance of the claim of exemption u/s 10B - HELD THAT:- Order passed in section 143(3) of the Act does not specify whether the proceedings were to be initiated for either concealment of income or for furnishing inaccurate particulars or both. It reads that inaccurate particulars of income were furnished thereby concealing an income on account of wrong claim. Notice under section 274 read with section 271(1)( c ) of the Act, however, reads that the assessee had to defend itself for concealment of particulars of income or furnishing of inaccurate particulars thereof. It does not specify whether it was concealment of income or furnishing of inaccurate particulars thereof. Impugned penalty order, however, reads that penalty was levied for submitting inaccurate particulars of income. These facts indicate that there is discrepancy as to in respect of which charge the assessee was called upon to defend itself. For the AO to assume jurisdiction u/s 271(1)(c), proper notice is necessary and the defect in notice u/s 274 of the Act vitiates the assumption of jurisdiction by the learned Assessing Officer to levy any penalty. In this case, facts stated supra, clearly establish that the notice issued under section 274 read with 271 of the Act is defective and, therefore, we find it difficult to hold that the learned AO rightly assumed jurisdiction to pass the order levying the penalty. As a consequence of our findings above, we direct the Assessing Officer to delete the penalty in question. - Decided in favour of assessee.
|