Late Mr. Davinder Kumar Vs DCIT (ITAT Delhi)
The appeals filed by the assessee, Late Mr. Davinder Kumar, challenge the orders of the Commissioner of Income Tax (Appeals)-29, New Delhi, for assessment years (AYs) 2008-09 to 2011-12, confirming penalties levied under Section 271(1)(c) of the Income Tax Act, 1961. All four orders were issued on 30 November 2023. The penalty in question pertains to alleged concealment of income or furnishing inaccurate particulars of income.
For AY 2008-09, the penalty of ₹8,36,195 was initially imposed by the Assessing Officer (AO) on 21 August 2014. The CIT(A) upheld the penalty in ex-parte proceedings. The assessee, via an application dated 31 January 2025, raised an additional ground of appeal questioning the validity of the notice issued under Sections 274 read with 271 of the Act, claiming it was issued mechanically and contained irrelevant contents, making it defective.
Upon examination, the Tribunal noted that the notice issued by the AO was an omnibus notice in a preprinted form, where it was unclear whether the penalty was levied for concealment of income, furnishing inaccurate particulars, or both. The assessment order also failed to specify which limb of Section 271(1)(c) triggered the penalty. This ambiguity rendered the notice vague and defective.
