2021 (4) TMI 1090

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.... PER R.S.SYAL, VP : 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. 2. Briefly stated, the facts of the case are that the asse....

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....O made additions, inter alia, for the above amounts on the basis of admission by the assessee. Subsequently, penalty was imposed u/s 271(1)(c) of the Act after issuing notice u/s 274 of the Act. The ld. CIT(A) observed that the notice issued by the AO u/s 274 contained both the limbs viz., concealment of income and furnishing of inaccurate particulars of income and none of the two was struck off, ....

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....125 taxmann.com 253 (Bom) considered this very issue. Answering the question in affirmative, the Full Bench held that a defect in notice of not striking the relevant words vitiates the penalty even though the AO had properly recorded the satisfaction for imposition of penalty in the order u/s 143(3) of the Act. In another judgment, the Hon‟ble Bombay High Court in Pr.CIT Vs. Golden Peace Hot....