GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (5) TMI 1023 - ITAT BANGALORE

2016 (5) TMI 1023 - ITAT BANGALORE - TMI - Penalty u/s 271(1)(c) - Held that:- It is imperative for the AO to show in the notice the default of assessee. Mere mentioning of the default in the assessment order may not be sufficient. Notice issued to the assessee does not specify the default of the assessee. In our opinion, notice u/s.274 r.w.s.271 of the Act, issued for the impugned assessment year was invalid. Exconsequenti the penalty order is set aside. - Decided in favour of assessee. - I.T.A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

taken by the assessee states that the notice issued initiating the penalty proceedings suffer from incurable defect. In support of this, assessee has filed a copy of the notice dt. 30.03.2013, issued u/s.274 r.w.s.271 of the Act. 03. Per contra, Ld. DR submitted that the levy of penalty for the impugned assessment year was for concealment of income. Ld. DR submitted that assessee had failed to disclose the correct income. There was clear concealment of income. According to him, vagueness of not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee by the CIT (A). In our opinion, notice has to specify whether there was concealment of particulars of income or furnishing of inaccurate particulars of income. If there are both, it is the duty of the AO to specify so. Hon ble jurisdictional High Court in the case of CIT v. M/s. Manjunatha Cotton & Ginning Factory (359 ITR 565) held as under at paras 15 to 17 : 15. The first legal question is whether the notice u/s 274 r.w.s.271 is valid. The learned DR s objection is that the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

datory conditions for invoking the provision of sec.271(1)(c ) of the Act? One of the mandatory conditions is that he notice u/s 274 r.w.s. 271 must be valid notice. In view of the same, we proceed to adjudicate this ground of appeal. 16. As seen from the notice issued u/s 271(1)(c) of the IT Act, it is dated 29-03-2002 addressed to the assessee for the assessment year 1998-99. It is in the prescribed form with the blanks to be filled up by the relevant information. At the bottom of the notice o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d. The Hon ble jurisdictional High Court in the case of CIT v. M/s Manjunatha Cotton & Ginning Factory (2013) page 93 para 59 to 61 has considered this issue at length and has held that clause(c ) of the printed form of notice u/s 274 deals with two satisfactions i.e. concealment of particulars of income or furnishing of inaccurate particulars of income. The Hon ble High Court has held that both the conditions are different and distinct though at times they may overlap with each other. It wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

set out therein. If the order passed by the authority categorically records a finding regarding the existence of any said grounds mentioned therein and then penalty proceedings is initiated, in the notice to be issued u/s 274, the could conveniently refer to the said order which contains the satisfaction of the authority which has passed the order. However, if the existence of the conditions could not be discerned from the said order and if it is a case of relying on deeming provision contained .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n sec.271(1)(c) do not exist as such he is not liable to pay penalty. The practice of the Department sending a printed form where as the ground mentioned in sec.271 are mentioned would not satisfy requirement of law when the consequence of the assessee not rebutting the initial presumption is serious in nature and he had to pay penalty from 100% to 300% of the tax liability. As the said provisions have to be held to be strictly construed, notice issued u/s 274 should satisfy the grounds which he .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n of the penalty proceedings also must be for both the offences. But drawing up penalty proceedings for one offence and finding the assessee guilty of another offence of finding him guilty for either the one or the other cannot be sustained in law. It is needless to pint satisfaction of the existence of the grounds mentioned in sec.271(1)(c) when it is a sine qua non for initiation or proceedings, the penalty proceedings should be confirmed only to those grounds and the said grounds have to be s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he final order imposing penalty would offend principles of natural justice and cannot be sustained Thus, once the proceedings are initiated on one ground, the penalty should also be imposed on the same ground where the basis of the initiation of penalty proceedings is not identical with the ground on which the penalty was imposed, the imposition of penalty is not valid. The validity of the order of the penalty must be determined with the reference to information, facts and materials in the hands .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncome are difference. Thus, the A 0 while issuing notice has to come to the conclusion that whether is it a case of concealment of income or is it a case of furnishing of inaccurate particulars. The Apex Court in the case of Ashok Pai reported in 292 ITR 11 at pages 19 has held that concealment of income and furnishing inaccurate particulars of income carry different connotations. The Gujarat Court in the case of Manu Engineering reported in 122 ITR 306 and the be Delhi High Court in the case of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version