Case Law Details
Ms Kaveri Infrastructure Pvt. Vs DCIT (ITAT Delhi)
Conclusion: AO was not justified in imposing penalty under section 271(1)(c) on assessee without specifying the grounds in the penalty notice as the same could not be construed as a mere technical error
Held: In the present case, AO imposed penalty under section 271(1)(c) on assessee by issuing notice under section 274 without specifying the grounds on which penalty was imposed, i.e., whether for concealment of income or for furnishing inaccurate particulars. It was held levy of penalty had to be clear as to the limb for which it was levied and the position being unclear penalty was not sustainable. Therefore, when AO proposed to invoke the first limb being concealment, then the notice had to be appropriately marked. Similar was the case for furnishing inaccurate particulars of income. The standard proforma without striking of the relevant clauses would lead to an inference as to non-application of mind. Thus, penalty was to be deleted.
FULL TEXT OF THE ITAT JUDGMENT
The Appellant, M/s Kaveri Infrastructure Pvt. Ltd., New Delhi- (hereinafter referred to as ‘the Assessee’) by filing the present appeal, sought to set aside the impugned order dated 22.12.2014 passed by Ld. CIT(A)-24, New Delhi, affirming the penalty order dated 18.03.2013 passed u/s 271(1)(c) of the Income-tax Act, 1961 (for short the ‘Act’), qua Assessment Year 2008-09, on the grounds that:-
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1. APPEAL FILING FEE WITH TRIBUNAL FOR ASSESSED INCOME IS 29 LACS AND PENALTY IS 3 LACS