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2021 (10) TMI 874 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - as argued no particular limb mentioned in the notice issued under Section 271(1)(c) r.w.s. 274 - notice is not mentioning the concealment or the furnishing of inaccurate particulars - HELD THAT:- Since in the instant case also the inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s. 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s. 271(1)(c) is not sustainable and has to be deleted. Although the Ld. DR submitted that mere non-striking off of the inappropriate words will not invalidate the penalty proceedings, however, the decision of the Hon'ble Karnataka High Court in the case of SSA'S Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] where the SLP filed by the Revenue has been dismissed [2016 (8) TMI 1145 - SC ORDER] is directly on the issue contested herein by the Assessee. Further, when the notice is not mentioning the concealment or the furnishing of inaccurate particulars, the ratio laid down by the Hon'ble High Court in case of M/s. Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] will be applicable in the present case - Notice under Section 271(1)(c) r.w.s. 274 of the Act itself is bad in law - Decided in favour of assessee.
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