Penalty Deleted as AO Failed to Specify Exact Section 271(1)(c) Charge: Delhi HC

PCIT Vs Blackroak Securities Pvt Ltd (Delhi High Court) The Delhi High Court dealt with an appeal filed by the revenue concerning Assessment Year 2014–15, challenging an order of the Income Tax Appellate Tribunal (ITAT) dated 5 May 2020. The Tribunal had set aside the order of the Commissioner of Income Tax (Appeals) and directed the Assessing Officer (AO) to delete a penalty amounting to ₹7,99,90,570 imposed under Section 271(1)(c) of the Income Tax Act, 1961. The Tribunal’s decision was based on the lack of clarity in the initiation of penalty proceedings by the AO. It observed that th...