https://www.taxtmi.com/caselaws?id=381165 The ITAT held that the show cause notice's failure to specify grounds for penalty initiation rendered the penalty proceedings invalid. Citing legal precedents, including decisions by the Karnataka High Court and Supreme Court, it was established that lacking specificity in the notice vitiates penalty proceedings. Consequently, the penalty under section 271(1)(c) of the I.T. Act, 1961 was deemed not leviable, leading to the cancellation of the penalty against the Assessee. The decision focused on the defective notice's impact on penalty validity, ultimately favoring the Assessee and overturning lower authorities' orders. en-us Mon, 03 Jun 2019 00:00:00 +0530 Wed, 05 Jun 2019 09:30:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=381165 The ITAT held that the show cause notice's failure to specify grounds for penalty initiation rendered the penalty proceedings invalid. Citing legal precedents, including decisions by the Karnataka High Court and Supreme Court, it was established that lacking specificity in the notice vitiates penalty proceedings. Consequently, the penalty under section 271(1)(c) of the I.T. Act, 1961 was deemed not leviable, leading to the cancellation of the penalty against the Assessee. The decision focused on the defective notice's impact on penalty validity, ultimately favoring the Assessee and overturning lower authorities' orders. Case-Laws Income Tax Mon, 03 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=381165