AO must explicitly mention grounds for imposing Section 271(1)(c) penalty

PCIT Vs Blackroak Securities Pvt Ltd (Delhi High Court) Introduction: The Delhi High Court recently ruled on a crucial tax matter, involving Blackroak Securities Pvt Ltd, challenging the penalty imposed under Section 271(1)(c) of the Income Tax Act for the Assessment Year 2014-15. The appeal questions the Tribunal’s decision to set aside the Commissioner of Income Tax (Appeals) order and directs the Assessing Officer to delete the penalty amounting to Rs. 7,99,90,570/-. The court’s decision provides valuable insights into the necessity of specifying the grounds for imposing penalti...