ITAT delete section 271(1)(b) penalty as Show Cause Notice was vague

Siddarthini Nanda Vs ACIT (ITAT Cuttack)

A perusal of the show cause notice as also the satisfaction recorded by the AO in the assessment order, clearly does not mention the specific notice issued u/s.142(1) of the Act in respect of which non-compliance the penalty has been initiated. A perusal of the assessment order in all the cases shows multiple notices have been issued u/s.142(1) of the Act. This being so, we are of the view that the show cause notice and the satisfaction recorded by the AO in all the cases under consideration is vague. Thus, the order passed by the AO levying penalty u/s.271(1)(b) of the Act and confirming the same by the ld. CIT(A) is not sustainable in the case of both the assessees and the same stand cancelled.

FULL TEXT OF THE ORDER OF ITAT CUTTACK

These are the appeals filed by the two different assessees against the separate orders of the ld. CIT(A)-2, Bhubaneswar, all dated 28.10.2022 for the assessment years 2010-2011 & 2011-2012, thereby confirming the penalty levied u/s.271(1)(b) of the Act.

2. Shri S.K.Sarangi, CA assisted by Intern Ms. Sugyanee Kuanr appeared for both the assessees. Shri S.C.Mohanty, Sr. DR assisted by Intern Mr. Dharmashoka Panda, appeared for the revenue.

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