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2022 (5) TMI 225 - AT - Income TaxPenalty u/s 271(1)(c) - Non specification of charge - defective notice - failure to specify the charge in the ‘Show cause’ - HELD THAT:- Failure on the part of the A.O to clearly put the assessee to notice as regards the default for which penalty under Sec. 271(1)(c) was sought to be imposed on him by specifying the default in the ‘SCN’, dated 27.12.2010, had left the assessee guessing of the default for which he was being proceeded against. In the backdrop of our aforesaid observations, we are of a strong conviction, that as the A.O had clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regards the default for which he was being proceeded against, therefore, the penalty under Sec. 271(1)(c) imposed by him being in clear violation of the mandate of Sec. 274(1) of the Act cannot be sustained. We, thus, for the aforesaid reasons not being able to persuade ourselves to subscribe to the imposition of penalty by the A.O, therefore, set-aside the order of the CIT(A) who had upheld the same. The penalty imposed by the A.O u/s 271(1)(c) is quashed - Decided in favour of assessee.
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