Penalty U/s 271(1)(c) Deleted — Defective Notice U/s 274 Without Specific Charge Invalidates Penalty: ITAT Mumbai

Advertisement Chiragkumar Rajendrabhai Shah Vs ITO (ITAT Mumbai) The assessee challenged penalty of ₹70 lakh levied u/s 271(1)(c) arising from addition treated as unexplained expenditure u/s 69C. ITAT allowed the appeal holding that penalty proceedings were vitiated due to defective notice and violation of principles laid down by jurisdictional High Courts. Tribunal observed that the original notice dated 30.03.2014 issued u/s 274 r.w.s. 271(1)(c) did not specify whether penalty was for concealment of income or furnishing inaccurate particulars, thereby depriving assessee of proper opport...