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2022 (8) TMI 484 - AT - Income TaxPenalty u/s 271 - Defective notice u/s 274 - non striking of irrelevant portions - whether no clear indication about the concealment of the particulars of income, nor there was clear indication for furnishing of inaccurate particulars of income? - HELD THAT:- As referring to notice A.O has not striked off the irrelevant part in the notice to specify whether the notice was issued for levying penalty for concealment of particulars of income or furnishing inaccurate particulars of income. It is clear that the notice did not indicate whether there was concealment of particulars of income or furnishing of inaccurate particulars of such income. The A.O has mentioned both limbs of Sec. 271(1)(c) of the Act i.e concealed the particulars of income or furnished inaccurate particulars of income in the notice. Hon’ble Supreme Court in the case of Principal Commissioner of Income Tax (Central) Vs. Goa Coastal Resorts and Recreation (P) Ltd. [2021 (8) TMI 1285 - SC ORDER] held that where there was no record of satisfaction by A.O in relation to any concealment of income or furnishing of inaccurate particulars by assessee in notice issued for initiation of penalty proceedings under Section 271(1)(c), same being sine qua non for initiation of such proceedings. Hon’ble High Court of Bombay in the case of Mohd. Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT]held that where assessment order clearly records satisfaction for imposing penalty on one or other or both grounds mentioned in section 271(1)(c) a mere defect in notice, not striking off irrelevant matter would vitiate penalty proceedings. - Decided in favour of assessee.
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