DWARKA PRASAD TAYAL,SENDHWA vs. ITO, SENDHWA, SENDHWA

ITA 978/IND/2025Status: DisposedITAT Indore10 July 2026AY 2011-1210 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the show cause notice issued by the AO was defective as it failed to specify the exact charge of default, i.e., whether it was for concealment of income or furnishing inaccurate particulars. Relying on the jurisdictional High Court's decision, the Tribunal quashed the penalty proceedings.

What were the facts?

The Assessing Officer (AO) initiated penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961, for AY 2011-12. The penalty was imposed due to the assessee allegedly furnishing inaccurate particulars of income. The assessee challenged the penalty on the grounds that the show cause notice was defective.

What were the issues?

Whether a penalty under Section 271(1)(c) is valid if the show cause notice issued under Section 274 is vague and does not specify the exact charge of default.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI Dr. MANISH BORAD & SHRI PARESH M. JOSHI

For Appellant: Shri S.N. Agrawal, AR
For Respondent: Shri Binay Kumar Rai, Sr. DR
Hearing: 08.07.2026

PER Dr. MANISH BORAD, A.M: This appeal of Assessee pertaining to A.Y. 2011-12 is directed against the order of First Appellate Authority dated 07.7.2014 which is arising out of the penalty order

ITA No.978 of 2025 2

u/s 271(1)(c) of the Income Tax Act 1961 (hereinafter called as the ‘Act’) framed on 25.03.2019 by ITO, Sendhwa.

2.

The sole grievance of the assessee revolves around the penalty u/s 271(1)(c) of the Act at Rs.30,00,000/-.

3.

At the outset, Ld. Counsel for the assessee raising a legal issue referring ground no.1 submitted that show cause notice dated 07.07.2014 issued u/s 274 r.w.s 271(1)(c) of the Act is defective as the Ld. AO failed to specify the specific charge

The order continues below.

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