https://www.taxtmi.com/caselaws?id=263879 The ITAT canceled penalties imposed under section 271(1)(c) of the Income Tax Act for assessment years 2004-05 to 2007-08. The Court emphasized the necessity of clearly stating grounds for penalty imposition in the notice under section 274, ensuring principles of natural justice. As the show cause notice did not specify grounds as required by law, following the Karnataka High Court's decision, the penalties were deemed invalid. The decision outlined that penalty imposition must be based on valid grounds discernible from relevant authorities, emphasizing the assessee's right to contest and provide explanations. en-us Wed, 26 Aug 2015 00:00:00 +0530 Sat, 12 Sep 2015 07:42:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=263879 The ITAT canceled penalties imposed under section 271(1)(c) of the Income Tax Act for assessment years 2004-05 to 2007-08. The Court emphasized the necessity of clearly stating grounds for penalty imposition in the notice under section 274, ensuring principles of natural justice. As the show cause notice did not specify grounds as required by law, following the Karnataka High Court's decision, the penalties were deemed invalid. The decision outlined that penalty imposition must be based on valid grounds discernible from relevant authorities, emphasizing the assessee's right to contest and provide explanations. Case-Laws Income Tax Wed, 26 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=263879