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2020 (11) TMI 3 - ITAT DELHIPenalty levied u/s 271(1)(c) - Defective notice - HELD THAT:- In this case at the time of initiation of the penalty proceedings, show cause notice u/s 274 read with Section 271(1)(c) of the Act was issued on 24.07.2017 wherein the ld. AO did not strike off any of the twin charges on which penalty is initiated. Hon’ble Delhi High Court in Pr. CIT Vs. Sahara India Life Insurance Co. Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] has categorically held that penalty is not sustainable if none of the twin charges in notice under Section 274 of the Act are cancelled or strike off. Penalty levied by the ld. Assessing Officer is not sustainable in law, hence we reverse the orders of the lower authorities and cancel the penalty levied by the ld. Assessing Officer under Section 271(1)(c) of the Act. - Decided in favour of assessee.
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