RAJENDRA KUMAR AND COMPANY,KANPUR vs. DEPUTY COMMISSIONER OF INCOME TAX- 2, KANPUR

ITA 584/LKW/2018Status: DisposedITAT Lucknow20 September 2019AY 2014-157 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a non-specific show-cause notice under Section 274 read with Section 271(1)(c) is void ab initio. Consequently, any penalty levied based on such a notice is illegal and liable to be deleted.

What were the facts?

The assessee's appeal concerns a penalty imposed under Section 271(1)(c) of the Income Tax Act. The primary contention is that the show-cause notice for the penalty was not specific regarding the charge (concealment of income or furnishing inaccurate particulars).

What were the issues?

Whether a penalty under Section 271(1)(c) is valid if the show-cause notice fails to specify the exact charge (concealment or inaccurate particulars) for which it is being levied.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274

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Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri Swaran Singh, FCA
For Respondent: Shri Ajay Kumar, D.R

PER A. D. JAIN, V.P.: This is assessee’s appeal for Assessment Year 2014-15, against the order of the ld. CIT(A)-I, Kanpur, dated 13/6/2018, taking the following grounds:

1.

That the impugned Penalty Order passed under section 271(1)(c) of the Income Tax Act, 1961, is illegal and unsustainable in law as the Ld. A.O. has not mentioned specific charge in the Statutory Notice issued under section 274 read with section 271(1)(c) of the Income Tax Act, 1961. 2. That the Ld. C.I.T. (Appeals)-I Kanpur has erred in law and on facts in sustaining the Penalty imposed under section 271(1)(c) of the Income Tax Act, 1961, even when the Ld. A.O has not mentioned the specific charge in the Statutory Notice issued u/s 274 r/w section 271(1)(c) of the Income Tax Act, 1961

The order continues below.

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