TMI BlogClarity and Precision in Tax Penalty Proceedings: Insights from a High Court JudgmentX X X X Extracts X X X X X X X X Extracts X X X X ..... the Delhi High Court, involving the interpretation and application of penalty provisions under the Income Tax Act, 1961 (the Act). The case, referenced as 2023 (6) TMI 1219 - DELHI HIGH COURT , centers around the intricacies of penalty proceedings under Section 271(1)(c) of the Act. Background and Facts The case revolves around an appeal concerning the Assessment Year (AY) 2012-13. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers the AO to levy a penalty in cases of concealment of income or furnishing inaccurate particulars of income. The critical issue was whether the penalty was justifiably levied in this case. Specificity in Penalty Notices : A significant point of contention was the Tribunal's observation that the notice issued under Section 274 read with Section 271(1)(c) did not specify the exa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings : The Court underscored the necessity for the AO to clearly indicate the specific limb under which the penalty proceedings are initiated. This requirement stems from the principle that the penal consequences must be clear and unambiguous to the assessee. Final Decision : Upholding the Tribunal's decision, the High Court concluded that the penalty notice was defective as it fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x authorities must follow precise and unambiguous procedures when initiating penal actions. This judgment thereby contributes to the evolving jurisprudence on tax penalties and procedural fairness in India's tax administration. Full Text : 2023 (6) TMI 1219 - DELHI HIGH COURT - FAQ - Frequently Asked Questions, TMI Short Notes , Experts comment, opinion Tax Management India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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