AJAYA KUMAR MISHRA,BADAMBA, CUTTACK vs. DCIT, CIRCLE-1(1), CUTTACK, CUTTACK

ITA 520/CTK/2026Status: DisposedITAT Cuttack29 May 2026AY 2014-154 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty notice was issued mechanically without application of mind and suffered from an incurable defect. Following the decisions of the Karnataka High Court and the Supreme Court, the Tribunal found the penalty unsustainable due to the failure to strike off the inapplicable limb in the notice.

What were the facts?

The Assessing Officer (AO) levied a penalty under Section 271(1)(c) of the Income Tax Act. The penalty notice issued by the AO under Section 274 read with Section 271 did not strike off the irrelevant portion, making it unclear whether the penalty was for concealment or furnishing inaccurate particulars.

What were the issues?

Whether a penalty under Section 271(1)(c) is valid when the notice issued under Section 274 does not strike off the inapplicable limb, rendering it ambiguous.

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, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 29/05/2026Pronounced: 29/05/2026

PerBench: This is an appeal filed by the assessee against the order of CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 26/03/2026 for the assessment year 2014-15, against confirmation of penalty of Rs.1,94,600/- levied by the AO u/s.271(1)(c) of the Act.

2.

Shri Somnath Sahu, ld AR appeared for the assessee and Shri Vijaya Singh, ld Sr DR appeared for the revenue.

3.

It was submitted by ld AR that the Assessing Officer has issued notice u/s.274 r.w.s 271 of the Act on 19th December 2016, which reads as follows:

2 “

4.

It was the submissi

The order continues below.

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