D.C.I.T. AMRAVATI CIRCLE, AMARAVATI vs. THE AMRAVATI ZILLA PARISHAD SHIKSHAK SAHAKARI BANK LTD., AMARAVATI
What did the Tribunal hold?
The Tribunal held that the show cause notice issued under Section 274 of the Act did not specify whether the case was for concealment or furnishing inaccurate particulars of income. This procedural defect vitiates the penalty proceedings.
What were the facts?
The Revenue appealed against the deletion of a penalty imposed under Section 271(1)(c) of the Income Tax Act. The Assessing Officer had imposed a penalty of Rs. 82,73,704/-.
What were the issues?
Whether a penalty under Section 271(1)(c) is valid when the show cause notice fails to specify the exact nature of the default (concealment or inaccurate particulars).
Which sections of the Income-tax Act were involved?
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- Mr. Mohd. Farhan A. Shaikh v. ACIT672 citing434 ITR 1 · 2021 · HC
Income Tax Appellate Tribunal, NAGPUR BENCHES : NAGPUR
Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE
THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCHES : NAGPUR (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.239/Nag./2018 Assessment Year 2013-2014 D.C.I.T. The Amravati Zilla Parishad Shikshak Amravati Circle, Amravati vs. Sahakari Bank Ltd. Congress Nagar Road, Near Rly. Bridge, Amravati-444606 PAN: AAAAT0593N (Appellant) (Respondent) For Assessee : Shri Kapin Hirani, CA For Revenue : Shri Kailash Kanojiya, Sr. DR Date of Hearing : 30.08.2023 Date of Pronouncement : 22.09.2023 ORDER PER SATBEER SINGH GODARA, J.M.
This Revenue’s appeal for A.Y. 2013-14, arises against the CIT(A)-1, Nagpur’s order dated 03.07.2018, passed in Case No.CIT(A)-1/10300/2016-17, in proceedings under section 271(1)(c) of the Income Tax Act, 1961 [“In short Act”].
Heard both the parties. Case file perused.
Coming to the Revenue’s sole substantive grievance challenging the deletion of penalty of Rs.82,73,704/- imposed u/s 271(1)(c) by the Assessing Officer’s corresponding order dated 06.09.2016 and reversed in the CIT(A)’s lower appellate discussion, we note at the outset that the former’s show cause notice issued
2 ITA.No.239/Nag./2018 DCIT vs. The Amravati Zilla Parishad Shikshak Sahakari Bank Ltd. under Section 274 of the Act dated 03.03.2016 had nowhere specified as to whether this is an instance of concealment or furnishing of inaccurate particulars of income. That being the case, we quote Mohd. Farhan A. Shaikh vs. DCIT [2021] 434 ITR 1 (Bom.) (FB) that such a failure at the Assessing Officer’s behest vitiates the entire proceedings.
We accordingly reject the Revenue’s vehement arguments supporting the impugned penalty in very terms. Ordered accordingly.
This Revenue’s appeal is dismissed in above terms.
Order pronounced in the open court on 22.09.2023
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