TMI Blog2022 (1) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... king off irrelevant clause would make the notice ambiguous and hence, defective. Consequently, the entire penalty proceeds would be vitiated. Thus we hold that the notice issued u/s 274 r.w.s. 271 of the Act is defective, hence, the subsequent penalty proceedings arising therefrom are vitiated. - Decided in favour of assessee. - ITA No. 27/MUM/2020 - - - Dated:- 18-1-2022 - Shri Vikas Awasthy, Judicial Member And Shri Om Prakash Kant, Accountant Member For a the Appellant : Ms. Dharshti Shah. For a the Respondent : Shri R.A. Dhyani. ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax(Appeals)-29, Mumbai [in short the CIT(A) ] dated 13/12/2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehemently defended the impugned order and prayed for dismissing appeal of the assessee. 4. We have heard the submissions made by rival sides and have examined the orders of authorities below, as well as, the notice issued under section 274 r.w.s. 271 of the Act . The legal ground raised by the ld. Authorized Representative for the assessee is admitted. A perusal of the said notice reveals that the same has been issued in an omnibus performa without striking off the limb which is not relevant. In the present case the Assessing Officer has initiated penalty proceedings for concealment of income. However, in the notice we observe both charges under section 271(1)(c) of the Act i.e. concealment of particulars of income or furnishing inaccur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vagueness. 182. More particularly, a penal provision, even with civil consequences, must be construed strictly. And ambiguity, if any, must be resolved in the affected assessee's favour. Thus, in the facts of the case and in the light of decision of Hon'ble Bombay High Court (supra), we hold that the notice issued under section 274 r.w.s. 271 of the Act is defective, hence, the subsequent penalty proceedings arising therefrom are vitiated. 5. In the result, the impugned order is quashed and appeal of the assessee is allowed. Order pronounced in the open court on Tuesday the 18th day of January, 2022. - - TaxTMI - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
