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2021 (9) TMI 347 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non specification of charge - new plea before the authorities below - HELD THAT:- On perusal of the paper book filed by the assessee, we find that the penalty notice was issued on the assessee on 27.12.2016 and the assessee has filed reply vide letter dated 17.01.2017 as well as letter dated 30.06.2017 - at no earlier point of time, the assessee had raised the plea before the authorities below that on account of the defect in the notice, it was put to prejudice on the ground that the notice issued under section 274 r.w.s. 271(1)(c) of the Act, the Assessing Officer has not specified any specific charge either for furnishing of inaccurate particulars or concealment of income. In view of the factual position, the ground raised by the assessee is devoid of any merits. Our view is duly supported by the decision of the Hon’ble Jurisdictional High Court in the case of Sundaram Finance Ltd. [2018 (5) TMI 259 - MADRAS HIGH COURT] which was affirmed by the Hon’ble Supreme Court reported in [2018 (10) TMI 1451 - SC ORDER] The Hon’ble Jurisdictional High Court has rejected the additional substantial question of law on the reason that the assessee had at no earlier point of time pointed out the defect in the notice that the notice issued under section 274 r.w.s. 271(1)(c) of the Act did not specifically state the grounds mentioned in section 271(1)(c) of the Act. In this case in hand, there is no such plea raised by the assessee before the Assessing Officer at the initial stage. Hence, the notice issued under section 271(1)(c) of the Act is valid notice and therefore, the ground raised by the assessee is not acceptable. Whether mere omission or negligence would not constitute a deliberate act of suppression? - The assessee has very well aware that the interest income from mutual fund is liable for taxation and accordingly filed the original return by offering the income for taxation. But, while filing the revised return, the assessee claimed the interest income as exempt, without any basis or evidence, and thus, the act of the assessee cannot be held as mere omission or negligence. Under the above facts and circumstances, we sustain the penalty levied under section 271(1)(c) of the Act and confirmed by the ld. CIT(A). - Decided against assessee.
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