HC Quashes 300% Penalty for Lack of Clear Violation Indication

PCIT Vs Gopal Kumar Goyal (Delhi High Court) Introduction: The Delhi High Court recently passed a notable judgement in the case of PCLT Vs Gopal Kumar Goyal, shedding light on the requirements of a penalty order under Section 271(1)(c) of the Income Tax Act, 1961. The court quashed a 300% penalty levied by the Assessing Officer (AO) due to lack of clarity in the notice about whether the respondent concealed income or furnished inaccurate particulars. Analysis: The court held that the AO must clearly indicate which part of Section 271(1)(c) has been violated in a penalty notice, considering the...