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2023 (12) TMI 766 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice u/s 274 - non strike of twin charges - as argued AO has not mentioned the specific limb in the show cause notice issued u/s 274 as to whether penalty is proposed to be levied for concealment of income or furnishing inaccurate particulars of income - HELD THAT:- From the perusal of the notice issued u/s 274 r/w section 271(1)(c) of the Act, furnished during the hearing, we find that the AO did not strike–off any of the twin charges i.e., concealment of particulars of income or furnishing of inaccurate particulars of income. The case of the assessee is squarely covered by the decision of the Hon'ble Jurisdictional High Court in Mohd. Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT (LB)] wherein the Larger Bench of the Hon’ble Court has held that the defect in notice by not striking off the irrelevant matter would vitiate the penalty proceedings. Accordingly, penalty order passed under section 271(1)(c) of the Act is quashed. Assessee appeal allowed.
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