Case Law Details
Antony Madassery Vs DCIT (ITAT Amritsar)
The Income Tax Appellate Tribunal (ITAT) in Amritsar recently deleted penalties under sections 271(1)(b) and 272A(1)(b) in the case of Antony Madassery Vs Deputy Commissioner of Income Tax (DCIT). The case revolved around the improper procedure followed in the issuance of income tax notices, resulting in penalties being levied on the assessee.
This judgment underscores the importance of proper procedure in the issuance of income tax notices. It demonstrates how overlooking such procedures can lead to unlawful levies of penalties. The case focused on the fact that the Assessing Officer (AO) had failed to issue a specific notice with points of special audit to the appellant assessee under section 142(2A) of the Act, with the approval of the Principal Commissioner of Income Tax (PCIT).
This ruling is consistent with the decision in the case of “Navjeevan Charitable Society” where a similar situation had arisen. The bench of the ITAT in that case held that merely writing letters to the assessee without mentioning the issues or points for special audit and without taking prior approval from the PCIT was bad in law.
The deletion of penalties in this case reiterates that tax authorities must adhere strictly to procedures and norms, and any violation thereof can lead to legal consequences, including the invalidation of penalties levied.
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