Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 374 - AT - Income TaxPenalty u/s. 271(1)(c) - Defective notice u/s 274 - validity of notice issued u/s 274 - Non striking of irrelevant portions - mere failure to tick mark the applicable grounds - As argued AO had not struck off the specific limb or had not specified the specific offence committed by the assessee as to whether the assessee had concealed the particulars of income or furnished inaccurate particulars of income or whether the assessee had committed both the offences - HELD THAT:- Penalty notice u/s. 274 r.w.s. 271(1)(c) is placed on record wherein we find that the ld. AO had not struck off the specific limb or had not specified the specific offence committed by the assessee as to whether the assessee had concealed the particulars of income or furnished inaccurate particulars of income or whether the assessee had committed both the offences. Hence, the penalty notice issued by the ld. AO becomes a defective notice. We find that the Full Bench of the Hon'ble Jurisdictional High Court in the case of Mohd. Farhan A. Shaikh vs. DCIT [2021 (3) TMI 608 - BOMBAY HIGH COURT] had categorically held that not striking off irrelevant portion in the penalty notice would vitiate the penalty proceedings. Accordingly, the Hon'ble Jurisdictional High Court had cancelled the penalty We hereby direct the ld. AO to cancel the penalty levied in the case of the assessee. Accordingly, the grounds raised by the assessee are allowed.
|