Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (11) TMI AT This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2024 (11) TMI 490 - AT - Income Tax


Issues:
Jurisdictional issue of penalty notice specification.

Detailed Analysis:

The appeal was filed against the order of the Learned Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13. The Assessing Officer had completed the assessment and initiated penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961, alleging inaccurate particulars of income by the assessee to reduce tax liability. The penalty imposed was Rs. 1,05,66,374 @ 100%.

The assessee appealed to the CIT (A) and made detailed submissions, but the appeal was dismissed. Aggrieved, the assessee raised two grounds of appeal before the ITAT. The first ground challenged the confirmation of the penalty, while the second ground contended that the Assessing Officer did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars.

During the proceedings, the assessee's counsel argued that the penalty notice was defective as it did not specify the charge, citing relevant case laws. The Revenue's representative objected to these submissions and supported the lower authorities' orders.

After considering the arguments and examining the records, the ITAT noted that the relevant limb for initiating penalty proceedings was not specified in the notice issued by the Assessing Officer. Citing case laws, including decisions by the Delhi High Court and the Bombay High Court, the ITAT held that the penalty order was liable to be quashed due to this fatal defect.

Based on the precedents and the failure to specify the relevant limb in the penalty notice, the ITAT directed the deletion of the penalty. Consequently, the ITAT set aside the orders of the lower authorities and ruled in favor of the assessee, deleting the penalty.

As the penalty was quashed on the jurisdictional issue, the ITAT did not delve into the merits of the penalty imposed, deeming it academic. Therefore, the appeal filed by the assessee was allowed, and the penalty was deleted.

The order was pronounced in the open court on October 22, 2024.

 

 

 

 

Quick Updates:Latest Updates