Penalty Invalid Due to Defective Notice Issued u/s 271(1)(c) of Income Tax Act

Meena Singhal Vs ITO (ITAT Delhi) Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently ruled in favor of Meena Singhal, an appellant challenging the penalty imposed on her under Section 271(1)(c) of the Income Tax Act. The Tribunal held that the penalty could not be upheld, primarily because the notice issued failed to disclose the specific charge. Analysis: The ITAT found that the notice issued by the Assessing Officer did not adequately specify the charge against Singhal. This omission falls into direct contradiction with the principles of natural justice, which mandate that...