Penalty order u/s 271(1)(c) issued without striking off irrelevant limb is liable to be deleted

Soniya Ashokkumar Sachdev Vs ITO (ITAT Mumbai)

ITAT Mumbai deleted penalty under section 271(1)(c) of the Income Tax Act as penalty order was issued without striking off the irrelevant limb/ inapplicable words.

Facts- The assessee had filed original return of income declaring total income at Rs.1,88,180/-. The case was selected for scrutiny under CASS and a notice u/s. 143(2) was served on the assessee on 22.09.2016. The AO passed assessment order u/s.143(3) of the Income Tax Act, 1961.

AO has levied penalty u/s.271(1)(c) of the Act. Aggrieved by the penalty order the Assessee had filed appeal before the CIT(A). Despite issuance of five notices to the appellant during the appellate proceedings, there was no compliance to any of them, accordingly, the CIT(A) upheld the order of the AO. Aggrieved by the order of the Ld.CIT(A) the assessee filed appeal before this Tribunal.

Conclusion- It is an admitted fact by the AO in the penalty order that notice u/s.271(1)(c) was issued for Concealment of Income / filling inaccurate particulars, without striking off the inapplicable words. This goes to the root of initiation of penalty.

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