2024 (11) TMI 1309 - AT - Income Tax

Penalty u/s 271(1)(c) - Defective notice u/s 274 - No specific limb as to whether it is an instance of concealment or that of furnishing of inaccurate particulars thereof - HELD THAT - This being the clinching fact emerging from the case file, the hon ble jurisdictional high court in PCIT Ors. V. M/s Sahara India Life Insurance Co. Ltd. 2019 (8) TMI 409 - DELHI HIGH COURT has already settled the issue in taxpayer s favour and against the department that such failure indeed vitiates the entire penalty proceedings. Accordingly, accept the assessee s sole substantive grievance in very terms. Assessee appeal allowed.

Summary

The appellate tribunal ITAT Delhi allowed the assessee's appeal for AY 2014-15 against a penalty imposed under section 271(1)(c) of the Income-tax Act, 1961. The tribunal found that the penalty notice did not specify whether it was for concealment or furnishing inaccurate particulars, following a precedent set by the high court in PCIT v. M/s Sahara India Life Insurance Co. Ltd. The appeal was allowed, and the order was pronounced on 26.11.2024.