2022 (1) TMI 1271

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....A. Dhyani. ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax(Appeals)-29, Mumbai [in short 'the CIT(A)'] dated 13/12/2019 for the assessment year 2012-13, confirming levy of penalty under section 271(1)(c) of the Income Tax Act, 1961( in short 'the Act'). 2. Ms. Dharshti Shah appearing on behalf of the assessee raised a....

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.... the Assessing Officer has issued notice without application of mind, without specifying the limb under section 271(1)(c) of the Act. The ld.Authorized Representative for the assessee submitted that the Hon'ble Jurisdictional High Court in the case of Mohd.Farhan A. Shaikh vs. DCIT reported as 434 ITR 1 has held that where the notice has been issued in a format without striking off irrelevant ....

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.... of particulars of income or furnishing inaccurate particulars of income are mentioned. The Full Bench of Hon'ble Bombay High Court in the case of Mohd.Farhan A. Shaikh vs. DCIT (supra) has held that the notice issued without striking off irrelevant clause would make the notice ambiguous and hence, defective. Consequently, the entire penalty proceeds would be vitiated. For the sake of complete....

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....t composite proceedings to draw strength from each other. Nor can each cure the other's defect. A penalty proceeding is a corollary; nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory....