Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 79 - ITAT HYDERABADPenalty u/s 271(1)(c) - Defective notice u/s 274 - As argued AO did not strike off the irrelevant portion of the notice for levy of penalty - non-striking off of irrelevant portion in the notice u/s 274 r.w.s. 271(1)(c) - HELD THAT:- For validity of notice u/s 274 r.w.s 271 (1)(c) for non-striking off of the irrelevant portion of the notice AO has struck of paras 2 & 3 of the notice which are irrelevant to the issue and since according to the Assessing Officer, the assessee concealed the income and also furnished inaccurate particulars of income, he did not strike off any portion of such para. Therefore, the said ground of appeal No.2 of the assessee is not sustainable. It is accordingly dismissed. Outstanding statutory liabilities - Assessee has not offered the interest income to tax - penalty on such addition is sustainable - with regard to the disallowance on which the penalty is levied, we find some strength in the argument of the assessee that these are pertaining to the earlier A.Ys. When they did not pertain to the relevant A.Y, the penalty on such disallowance is not sustainable - we direct the AO to verify the statutory liabilities which pertain to the earlier years and on such items, no penalty u/s 271(1)(c) of the Act shall be levied. Assessee’s appeal is partly allowed for statistical purposes.
|