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2022 (6) TMI 266 - ITAT AHMEDABADPenalty under Section 271(1)(c) - Defective notice u/s 274 - non-filing of return of income - HELD THAT:- It is pertinent to note that the entire basis of imposing penalty was concealment of income on the part of the assessee as to non-filing of return of income by the assessee. But from the perusal of the records we can see that the assessee has filed return of income which was very much submitted before the AO as well as before the CIT(A) and quoted in the written submissions in both the orders - AO as well as the CIT(A) has not at all verified this fact and simplicitor imposed penalty on concealment of income under Section 271(1)(c) of the Act without giving any opportunity to the assessee at the appellate stage i.e. before the CIT(A). Further, it is noticed that in the notice issued under Section 271(1)(c) read with Section 274 of the Act the specific limb was also not mentioned in the notice. Therefore, the decision in the case of CIT vs. SSA’s Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] and CIT vs. Manjunatha Cotton & Ginning [2013 (7) TMI 620 - KARNATAKA HIGH COURT] as well as decision of the Hon’ble Delhi High Court in the case PCIT vs. Sahara India Life Insurance Co. Limited [2019 (8) TMI 409 - DELHI HIGH COURT] are applicable in the present case. It has been held in these decisions that notice issued by the Assessing should specify which limb of Section 271(1)(c) of the Act penalty proceedings has been initiated. Therefore, the appeal of the assessee allowed.
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