2021 (11) TMI 422 - ITAT DELHI - Income Tax

Head Note / Extract:
Penalty levied u/s 271(1)(c) - Defective notice u/s 274 - HELD THAT:- On identical set of facts as decided in AVEE MEDI SURGICALS PVT. LTD. VERSUS ACIT, CENTRAL CIRCLE-6 NEW DELHI [2021 (7) TMI 669 - ITAT DELHI] 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 it 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.