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2022 (6) TMI 832 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - HELD THAT:- Penalty was levied on the basis of concealment of income but we observed that the penalty notice u/s. 274 r.w.s. 271(1)(c) of the Act is issued without indicating on what basis the penalty proceedings was initiated. Normally, we fall back in such situation to the Assessment Order in which AO normally indicate on what basis penalty proceedings will be initiated. In this case we observed that in Assessment Order AO has indicated that penalty proceedings will be initiated on the basis of furnishing of inaccurate particulars of income whereas we observed that the penalty was levied ultimately on concealment of income. It clearly shows that Assessing Officer is not clear on what basis the penalty proceedings were initiated and completed. The facts are clearly falls under the category of issue of improper notice. Respectfully following the decision of the Hon'ble Jurisdictional High Court in the case of Mohd Farhan A Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] in which the penalty proceedings initiated based on the improper notice is bad in law. Accordingly, penalty levied by the Assessing Officer is accordingly, deleted. - Decided in favour of assessee.
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