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2015 (9) TMI 547 - ITAT BANGALOREPenalty u/s. 271(1)(c) - vlidity of notice u/s. 274 - unaccounted sales - entire sale value was treated as income of the Assessee and brought to tax rejecting assessee contention that only the gross profit on these unaccounted sales can be added as income of the Assessee and not the entire sales - Held that:- On the facts of the present case that the show cause notice u/s. 274 of the Act is defective as it does not spell out the grounds on which the penalty is sought to be imposed. Following the decision of tin the case of CIT & Anr. v. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT ] wherein held that notice u/s. 274 of the Act should specifically state as to whether penalty is being proposed to be imposed for concealment of particulars of income or for furnishing inaccurate particulars of income.we hold that the orders imposing penalty in all the assessment years have to be held as invalid and consequently penalty imposed is cancelled. - Decided in favour of assessee.
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