Case Law Details
Associated Trading Vs. ITO ( ITAT Kolkata)
show cause notices issued under section 274 of the Act read with section 271 of the Act dated 30-10-2012 before imposing penalty does not contain the specific charge against the assessee namely as to whether the assessee was guilty of having concealed particulars of income or having furnished inaccurate particulars of income. A copy of the show cause notice under section 274 of the Act was filed before us and perusal of the same reveals that assessing officer has not struck out the irrelevant portion in the show cause notice and, therefore, the show cause notice does not specify the charge against the assessee as to whether the charge is of concealment of particulars of income or furnishing of inaccurate particulars of income.
High Court following its own decision in the case of CIT v. Manjunatha Cotton and Ginning factory (2013) 359 ITR 565 took a view that imposing of penalty under section 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice under section 274 of the Act does not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income.
In these circumstances, we are of the view that imposition of penalty cannot be sustained.
FULL TEXT OF THE ITAT JUDGMENT
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