Section 271(1)(c) Penalty Invalid for Non-Specification of Charge: ITAT Agra

Tahir Khan Vs ITO (ITAT Agra) Penalty of ₹83.45 Lakh u/s 271(1)(c) Quashed for Defective Notice; Failure to Specify Charge Vitiates Proceedings – ITAT Agra The Agra Bench of the ITAT allowed the assessee’s appeal and deleted penalty of ₹83.45 lakh levied under section 271(1)(c) for AY 2014-15, holding that the entire penalty proceedings were void ab initio due to a defective and vague show-cause notice. The Assessing Officer had imposed penalty pursuant to large additions (mainly ₹97.31 lakh under section 56(2)(vii) and other ad-hoc disallowances). The assessee challenged the penalty...