Penalty u/s 271(1)(c) - Defective notice u/s 274 - failing to ...

Court Rules Defective Tax Notice Valid Without Prejudice; Contextual Application of Natural Justice Affirmed.

January 16, 2024

Case Laws     Income Tax     HC

Penalty u/s 271(1)(c) - Defective notice u/s 274 - failing to tick mark the limb or non-striking of second limb - The Court observed that such violation will not result in nullifying the orders passed by statutory authorities. It was observed that if the case of the assessee is that the assessee was put to a prejudice and principles of natural justice were violated on account of not being able to submit an effective reply, it would be a different matter. It was observed that on facts, the Court could safely conclude that even assuming that there was defect in the notice, it had caused no prejudice to the assessee and the assessee “clearly understood” what was the purport and import of notice issued under section 274 read with Section 271 of the Act. The principles of natural justice cannot be read in abstract. - HC

View Source