ORIENTAL RELAYS LLP (SUCCESSOR TO ORIENTAL RELAYS PVT. LTD.),KOLKATA vs. A.C.I.T., CIRCLE - 8(2), KOLKATA, KOLKATA

The only issue pressed by the assessee is against the confirmation of penalty by the ld. CIT (A) as imposed by the ld. AO u/s 271(1)(c) of the Act, on the basis of invalid notice issued u/s 274 read with section 271(1)(c) of the Act.

The facts in brief are that the assessment u/s 143(3) of the Income- tax Act, 1961 (the Act) dated 27.12.2018, was passed by making an

Now, the assessee has challenged the order of ld. CIT (A) on the ground that since the penalty order was passed in consequence to invalid notice u/s 271(1)(c) of the Act, therefore, all the consequential proceedings/ orders are invalid and may be quashed. The ld. AR referred to the notice issued u/s 274 read with section 271(1)(c) of the Act and submitted that the ld. AO has not struck off the irrelevant limb nor indicated the relevant limb in the penalty notice and therefore, notice itself is issued without application of mind and in standard format which rendered the said notice to be invalid in the eyes of the law. Consequently, the penalty order passed u/s 271(1)(c) of the Act is also invalid and deserved to be quashed. In defense of his argument, the ld. Counsel for the assessee following the decisions: -