Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 932 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Defective notice u/s 274 - assessee has challenged the impugned order contending that the show-cause notice issued by the AO is not a valid notice to initiate the penalty proceedings as the assessee has not been made aware as to whether he has concealed the particulars of income or has furnished inaccurate particulars of such income - HELD THAT:- A bare perusal of the notice issued to the assessee u/s 274 read with section 271(1)(c) goes to prove that assessee has not been called upon to explain if it has concealed the particulars of income or furnished inaccurate particulars of such income. We are of the considered view that when the assessee has not been specifically made aware of the charges leveled against it as to whether there is a concealment of income or furnishing of inaccurate particulars of income on its part, the penalty u/s 271(1)(c) of the Act is not sustainable. Recently, the Hon’ble Delhi High Court M/S. SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [2019 (8) TMI 409 - DELHI HIGH COURT] has approved the order of the Hon’ble Karnataka High Court in the case of Sahara India Life Insurance [2019 (8) TMI 409 - DELHI HIGH COURT]. Respectfully following the judicial precedents as aforementioned, we set aside the order of the Ld. First Appellate Authority and direct the AO delete the penalty. - Decided in favour of assessee.
|