SOJIRAM ISPAT PRIVATE LIMITED,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(2), HYDERABAD
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the failure of the Assessing Officer to specify in the penalty show cause notice whether the assessee had concealed income or furnished inaccurate particulars renders the penalty proceedings invalid. Consequently, the impugned penalty was deleted on this ground.
What were the facts?
The assessee's appeal concerned a penalty levied under Section 271(1)(c) of the Income Tax Act for the assessment year 2009-10. The penalty notice issued by the Assessing Officer did not specify whether the assessee had concealed income or furnished inaccurate particulars.
What were the issues?
The primary issue was the validity of the penalty proceedings due to a vague penalty show cause notice. The tribunal considered whether the notice adequately informed the assessee of the specific charge under Section 271(1)(c).
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(2)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Mr. Mohd. Farhan A. Shaikh v. ACIT672 citing125 Taxmann.com 253 · 2021 · HC · Read judgment
- Pr.CIT v. Baisetty Revathi62 citing398 ITR 88 · 2017 · HC
Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD
Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU
O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2009-10 arises from the CIT(A)-3, Hyderabad’s order dated 23-03-2020 passed in case No.10414/ 2017-18 / A3 / CIT(A)-3 , involving proceedings u/s. 271(1)(c) r.w.s. 254 of the Income Tax Act, 1961 [in short, ‘the Act’]. 2. We now advert to assessee’s sole substantive ground against levying penalty of Rs.37,02,113/- u/s.271(1)(c).
M/s Sojiram Ispat Private Limited, Hyd.
It transpires during the course of hearing at the outset that the Assessing Officer’s corresponding penalty show cause notice dated 26122011 had nowhere specified as to whether the assessee had “concealed the particulars of income or furnished inaccurate particulars of income”. We quote, hon'ble jurisdictional high court’s decision Pr.CIT Vs. Baisetty Revathi [398 ITR 88] (Telangana & AP) and Mohd.Farhan A.Shaikh Vs. DCIT (2021) [125 taxmann.com 253] (Bom) (FB) that such a failure renders the entire penal mechanism as invalid. We therefore delete the impugned penalty for this precise issue alone.
This assessee’s appeal is allowed in above terms. Pronounced in Open Court on 08th October, 2021.
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More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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