TaxTMI Login
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
TaxTMI 
Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal sets aside penalty due to lack of clarity on grounds, emphasizing procedural compliance.</h1> <h3>Shri. Syed Tajamul Pasha Versus Deputy Commissioner of Income-tax, Circle -5 (2) (1), Bangalore</h3> The Tribunal allowed the appeal, holding the notice initiating penalty proceedings invalid due to lack of clarity on grounds for penalty initiation, ... Penalty u/s 271 - invalid notice - Held that:- 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. Ex-consequenti the penalty order is set aside. Issues Involved:Levy of penalty under section 271(1)(c) of the Income-tax Act, 1961 based on a notice suffering from defects.Detailed Analysis:Issue 1: Validity of the notice initiating penalty proceedingsThe assessee challenged the penalty levied under section 271(1)(c) of the Act, citing a defect in the notice issued for initiating the penalty proceedings. The notice did not specify whether there was concealment of income or furnishing of inaccurate particulars of income. The jurisdictional High Court emphasized the importance of the notice being clear on the grounds for penalty initiation. The Court held that the AO must specify the grounds for penalty initiation, whether concealment of income or furnishing inaccurate particulars, and failure to do so indicates non-application of mind. In this case, the notice did not specify the relevant portion for initiating penalty proceedings, rendering it invalid. The Tribunal followed the High Court's decision and held the notice invalid, setting aside the penalty order.Conclusion:The Tribunal allowed the appeal of the assessee, emphasizing the necessity for the AO to clearly specify the default of the assessee in the notice initiating penalty proceedings. The invalid notice led to the setting aside of the penalty order, highlighting the importance of procedural compliance in penalty imposition under the Income-tax Act, 1961.
TaxTMI 
