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2021 (12) TMI 945 - HC - Income TaxPenalty levied u/s 271(1)(c) - whether penalty is being levied for concealment or for furnishing of inaccurate particulars of income, the penalty levied consequent to the impugned notice was without jurisdiction and liable to be quashed? - HELD THAT:- The assessee cannot be non-suited from raising such a contention that too before a Tribunal, even assuming it is for the first time. This is so because the Tribunal is the last forum which will decide the factual issue. Therefore, assessee cannot be prevented from raising such a contention. We say so because in the case on hand, the assessee is an individual. It may be true that there are other decisions of the various High Courts which have refused to entertain such a ground at the appeal stage, namely the penalty notice was defective. But those decisions are distinguishable on facts and in most of the cases assessee like a big corporate house having a large legal team to advise and therefore, the question of inadvertence can never be pleaded by the assessee. In contrast to the same, the present case in which the assessee before us is an individual. We are of the view that assessee should not be shut out from raising the jurisdictional issue. The Tribunal on going through the record and in particular, the show-cause notice dated 29th December, 2010 has recorded a finding of fact that the irrelevant portions of the show-cause notice has not been struck off and thus prejudiced the assessee from putting forth an effective objection. The Tribunal also rightly took note of the decision in CIT & ANR V. MANJUNATHA COTTON AND GINNING FACTORY, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] - Thus, we find there is no error in the decision of the Tribunal nor the decision making process for us to interfere with the said order. Accordingly, appeal filed by the revenue is dismissed and the substantial questions of law are answered against the revenue.
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