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2022 (1) TMI 231 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice u/s 274 - non striking off inappropriate words - Addition on account of unexplained investment and undeclared interest income - HELD THAT:- A perusal of the notice issued u/s.274 r.w.s. 271 issued by the AO shows that the inappropriate words in the said notice have not been struck off. As in the case of PCIT vs Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] held that the notice issued by the Assessing Officer is bad in law since it did not specify under which limb of section 271(1)(c) penalty proceedings have been initiated i.e. whether for concealment of income or for furnishing of inaccurate particular of income. Since, the AO in the instant case has not struck off the inappropriate words in the notice issued u/s. 274 r.w.s. 271 of the Act dated 29th December, 2016 and the notice does not indicate the proper charge, i.e., under which limb of section 271(1)(c) of the I.T. Act the penalty proceedings have been initiated, therefore we delete penalty levied - Decided in favour of assessee.
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