Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
The ITAT held that the penalty under section 271(1)(c) was unsustainable as the Assessing Officer failed to record satisfaction specifically whether the assessee concealed particulars of income or furnished inaccurate particulars, a mandatory precondition for initiating penalty proceedings. The AO issued the notice under section 274 read with section 271(1)(c) in a standard proforma without deleting irrelevant portions, indicating non-application of mind. Consequently, the penalty notice was invalid for lack of clarity and specificity, denying the assessee adequate opportunity to respond. The tribunal quashed the penalty order, allowing the appeal, reaffirming that proper satisfaction and clear specification of charge are essential prerequisites before imposing penalty under section 271(1)(c).
The ITAT held that the penalty under section 271(1)(c) was unsustainable as the Assessing Officer failed to record satisfaction specifically whether the assessee concealed particulars of income or furnished inaccurate particulars, a mandatory precondition for initiating penalty proceedings. The AO issued the notice under section 274 read with section 271(1)(c) in a standard proforma without deleting irrelevant portions, indicating non-application of mind. Consequently, the penalty notice was invalid for lack of clarity and specificity, denying the assessee adequate opportunity to respond. The tribunal quashed the penalty order, allowing the appeal, reaffirming that proper satisfaction and clear specification of charge are essential prerequisites before imposing penalty under section 271(1)(c).
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