A defect in the notice of not striking the relevant words vitiates the penalty under the Income Tax Act

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Last updated: 14 May 2021
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The Income Tax Appellate Tribunal has ruled that a penalty imposed under Section 271(1)(c) of the Income Tax Act was invalid. This was due to a defect in the notice issued by the Assessing Officer. The notice failed to specify whether the penalty was for concealment of income or for furnishing inaccurate particulars, as required by Section 274. Consequently, the penalty amount of over £2.2 million was deleted.

Court :
ITAT Pune

Brief :
This appeal by the Revenue is directed against the order passed by the CIT(A)-2, Aurangabad on 13-04-2017 deleting penalty of Rs.2,26,23,440 imposed by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called `the Act‟) in relation to the assessment year 2013-14.

Citation :
ITA No.1547/PUN/2017

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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