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2020 (10) TMI 137 - AT - Income TaxPenalty u/s 271 - Defective notice - whether the assessee is guilty of concealment of income or of furnishing inaccurate particulars of income? - HELD THAT:- Once the notice issued by the AO under section 274 r.w.s. 271 of the Act is found to be defective because there is no specific allegation made by the AO regarding this aspect as to whether the assessee is guilty of concealment of income or guilty of furnishing inaccurate particulars of income, the said notice cannot be accepted as valid even if such specific allegation is made by the AO in the Assessment Order. In our considered opinion, the AO has to make a specific allegation in the Assessment Order also and that will satisfy this requirement that the AO was satisfied about reason of initiating penalty proceedings but even after that, the allegation should be specific and clear in the penalty notice also because the assessee has to submit reply in the course of penalty proceedings on the basis of allegation in the penalty notice only and not on the basis of allegation in the Assessment Order and therefore, even if specific allegation is made by the AO in the Assessment Order, the defect in the penalty notice does not get rectified even under section 292B Rectification of mistake - HELD THAT:- In the present case, this is not the case of the Revenue that any judgment of Hon’ble jurisdictional High Court was not considered by the Tribunal in the present case. In fact, this is admitted position that the Tribunal order is following the binding judgment of Hon’ble Karnataka High Court rendered in the case of CIT Vs. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] and therefore, in the facts of the present case, this judgment of Hon’ble Gujarat High Court is also not rendering any help to the Revenue. We find that there is no apparent mistake in the impugned Tribunal order. - Decided in favour of assessee.
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