TaxTMI 
TaxTMI 
2026 (9) TMI 1720
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....ld. AO u/s 270A of the Income-tax Act, 1961 (the Act) at the rate of 200% despite the fact that the show cause notice issued u/s 274 read with section 270A of the Act dated 28.11.2024, was invalid as the same was issued in a vague, ambiguous and without specifying specific limb or sub clause of Section 270A (9) under which the penalty proceedings were initiated and therefore the same is invalid void ab initio and may be quashed. 3. The facts in brief are that an assessment u/s 147 read with section 144B of the Act dated 28.11.2024, was passed by the ld. AO by disallowing donation of Rs.1.00 lacs claimed to be given to Yuva Jan Jagrity Party by adding the same to the income of the assessee. 4. The ld. AO also initiated the penalty proc....
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....ender the notice as invalid as bad in law. The case of the assessee is squarely covered by the of Hon'ble Kolkata High Court in case of KPC Medical College and Hospital Vs. PCIT reported in (2025) 173 taxmann.com 581 (Calcutta), wherein the Hon'ble Court held as under:- "12. The learned advocate appearing for the appellant/assessee submitted that though the three substantial questions of law which were admitted for consideration did not concern the validity of the proceedings under Section 153C of the Act, these grounds were canvassed by the assessee in the review application. In this regard, we take note of the decision of the Hon'ble Supreme Court in Commissioner of Income-tax v. Sinhgad Technical Education Society [2....
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....e imposition of penalty under section 271(1)(c) of the Act is bad in law and invalid for the reasons where the show cause notice under section 274 of the Act did not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income. The said decision of the High Court of Karnataka was affirmed by the Hon'ble Supreme Court in the decision reported in Commissioner of Income-tax v. SSA'S Emerald Meadows [2016] 73 taxmann.com 248/242 Taxman 180 (SC). On the same lines it is the decision of this court in Pr. CIT v. Brijendra Kumar Poddar in [ITAT No. 215 of 2018, dated 23-11-2021]. As pointed out earlier, the show cause notice issued under Secti....
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.... Hon'ble' High Court in the context of notice issued u/s 271(1)(c) of the Act. but the ratio laid is squarely applicable to the assessee's case. Therefore, we are inclined to quash the penalty notice as well as the penalty order passed u/s 270A of the Income-tax Act, 1961 (the Act). 9. Even otherwise, the order passed by the ld. CIT (A) upholding the order of ld. AO passed u/s 270 of the Act is bad in law as the same is passed in violation of principal of consistency in as much as the ld. CIT (A) failed to maintain the judicial decorum, discipline and uniformity by adopting completely divergent view on identical facts of donation made to the same political party/ entity (Yuva Jan Jagrity Party) within the same assessment period. We n....