2025 (8) TMI 205

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d by this common order. ITA No. 2913/Del/2019 AY 2013-14 2. This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-28, New Delhi [in short 'the CIT(A)] dated 25.01.2019, confirming levy of penalty u/s. 271(1)(c) of the Income Tax Act,1961(hereinafter referred to as 'the Act'). 3. Shri D.C Garg, appearing on behalf of the assessee submitted that the assessee has raised multiple grounds of appeal challenging levy of penalty u/s. 271(1)(c) of the Act. However, at this stage the assessee is only pressing ground no. 5 of appeal assailing penalty on the ground of defective notice. 4. The ld. AR of the assessee placed on record copy of notice dated 31.10.2017 issued u/s. 274 r.w.s. 271 of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....off irrelevant clause in the preprinted notice, makes the notice ambiguous and defective. 7. Further, a perusal of the assessment order dated 31.10.2017 passed u/s. 144C r.w.s. 143(3) of the Act would show that the penalty proceedings u/s. 271(1)(c) of the Act were initiated for concealment of income. Whereas, the penalty has been levied by the AO vide order dated 26.04.2018 for furnishing inaccurate particulars. 8. The manner in which the Assessing Officer initiated penalty, issued notice u/s. 274 r.w.s 271 of the Act and finally pass the penalty order shows ambiguity and vagueness in the mind of Assessing Officer with regard to the charge for which penalty is to be levied u/s. 271(1)(c) of the Act. The Hon'ble Supreme Court of India....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted 21.01.2019, for AY 2013-14 confirming levy of penalty u/s. 271(1)(c) of the Income Tax Act,1961(hereinafter referred to as 'the Act'). 12. The assessee in appeal has assailed levy of penalty inter alia on the ground of defective/ambiguous notice issued u/s. 271(1)(c) of the Act. 13. The ld. AR of the assessee placed on record copy of notice dated 27.10.2017 issued u/s. 274 r.w.s. 271 of the Act, the same is extracted herein below: The ld. AR of the assessee pointed that the AO in notice has not specified the charge section 271(1)(c) of the Act for which penalty has been levied. Since, the notice is ambiguous no penalty u/s. 271(1)(c) of the Act can be levied on ambiguous and defective notice. 14. Per contra, Ms. Monika Singh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of income with conjunction "or". This makes the notice ambiguous and defective. It is no more res integra that penalty proceedings u/s. 271(1)(c) of the Act on defective notice are unsustainable. 18. In light of facts of the case and the settled legal preposition, we find merit in ground no. 5 of appeal, the penalty levied by the AO is directed to be deleted and appeal of the assessee is allowed. ITA No. 2909/Del/2019 AY 2011-12 19. This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-28, New Delhi [in short 'the CIT(A)] dated 25.01.2019, for AY 2011-12 confirming levy of penalty u/s. 271(1)(c) of the Income Tax Act,1961(hereinafter referred to as 'the Act'). 20. The assessee has as....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the assessee's are allowed. Order pronounced in the open court on Wednesday the 30th day of July, 2025. ============= Document 1 I.T.N.S .- 29 NOTICE UNDER SECTION 274 READ WITH SECTION 271 OF THE INCOME TAX ACT, 1961 Dated: 31-10-2017 PAN: AAACU80648 To M/S. UNITECH HI-TECH DEVELOPERS LTD BASEMENT, 6, COMMUNITY CENTRE, SAKET, NEW DELHI-110017 Whereas in the course of proceedings before me for the assessment year 2013-14 it appears to me that you "have without reasonable cause failed to comply with a notice under section 142(1)/143(2) of the Income Tax Act, 1961 dated. *have concealed the particulars of your income or furnished Inaccurate particulars of such income in terms of explanation 3 You are her....