Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 380 - AT - Income TaxPenalty u/s 271(1)(c) - period of limitation - CIT(A) has passed rectification order on 28.10.2011, second notice u/s 271(1)(c) was issued on 04.03.2013. - HELD THAT:- AO after issuing the initial notice u/s 271(1)(c) of the Act on 17.12.2009, keeping the proceedings in abeyance, has assumed jurisdiction to pass the order dated 30.03.2013 on the basis of subsequent notice u/s 271(1)(c) dated 04.02.2013 which was issued after the receipt of CIT(A)’s rectified order. There was no justification to issue a fresh notice u/s 271(1)(c) of the Act on 04.02.2013, as already Ld. AO at the instance of the assessee had kept the penalty proceeding in abeyance. The disposal of appeal by Ld. CIT(A) on 28.02.2011, itself gave Ld. AO an opportunity to revive the penalty proceedings or to have waited further for the order from Tribunal. Thus, for the purpose of exercising jurisdiction to pass the penalty order the Ld. AO was supposed to proceed on receiving the order of ld. CIT(A) dated 28.02.2011 and when that is taken into account, the order dated 30.03.2013 stands barred by limitation, as for the purpose of Section 275(1)(a) of the Act, the period of 6 months for disposal of appeal had to be reckoned from receipt of order of Ld. CIT(A). Non-striking of the limb in the notice - DR could not dispute the fact that these notices were issued on cyclostyle formats. In this regard, there is a consistent view of the Tribunal following the Delhi High Court judgment in PCIT v. Sahara India Life Insurance Co. Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] that non-striking of the limb in the notice vitiates the penalty order. In the case in hand on behalf of the Ld. DR an attempt was made to defend the notices submitting that there are allegations of both concealment and of furnishing inaccurate particulars, then in that case it was all the more necessary to identify and convey to the assessee under the notice as to which particular set of allegations he needs to defend. The Bench is inclined to sustain the grounds raised in the cross objections, consequently, the same are allowed
|