GAUTAM AUTOMOBILES PRIVATE LIMITED,NEW DELHI vs. ACIT, C R BUILDING
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMANAssessment Year: 2014-15 Gautam Automobiles Pvt. Ltd., L-19, Green Park Main, Delhi Vs. ACIT (OSD), Range-42, Delhi PAN: AAACG0336L (Appellant)
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2014-15, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1071415601(1), dated
20.12.2024 involving proceedings under section 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Assessee by Sh. Rajat Garg, CA
Department by Sh. Rajesh Kumar Dhanesta, Sr. DR
Date of hearing
30.06.2025
Date of pronouncement
30.06.2025
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It emerges at the outset during the course of hearing that both the learned lower authorities have held the assessee to have furnished it’s inaccurate particulars of income to levy section 271(1)(c) penalty in question amounting to Rs.2,81,022/- vide Assessing Officer’s order dated 27.03.2019 which stands upheld in the CIT(A)’s detailed discussion. 3. The assessee has first of all raises it’s legal argument that once the learned Assessing Officer had admittedly issued his penalty show-cause notice(s) u/s 271(1)(c) r.w.s. 274 of the Act 14.09.2016, not specifying any specific limb thereunder, his failure to this effect vitiates the entire proceedings. The Revenue on the other hand has vehemently argued that such a defect is only a procedural one only which is not fatal to the impugned penalty. 4. Faced with this situation, we quote PCIT Vs. Sahara (Del.) to conclude that once the learned Assessing Officer has not specified the corresponding limb in his section 3 | P a g e
271(1)(c) penalty show-cause notice forming part of the case records, his failure to this clinching effect indeed vitiates the penalty proceedings itself.
We order accordingly.
5. All other pleadings on merit in the assessee’s instant appeal stand rendered academic.
6. This assessee’s appeal is allowed in above terms.
Order pronounced in the open court on 30th June, 2025 (S. RIFAUR RAHMAN)
JUDICIAL MEMBER
Dated: 30th June, 2025. RK/-