Case Law Details
DCIT Vs Ambuja Neotia Holdings Pvt. Ltd. (ITAT Kolkata)
ITAT find that the notice u/s 274 read with Section 271(1)(c) dated 13.08.2015 has been issued in a mechanical manner and in standard format without mentioning one of the two limbs on which the penalty was proposed to be levied. In other words, the notice mentioned both the limbs i.e. considering of record as well as furnishing of income inaccurate manner which is not permissible under the Act. In view of these facts we do not find any infirmity in the order of Ld. CIT(A). Non-mentioning of relevant limb in the penalty notice in substantive defect and infirmity which is not curable.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the revenue against the order of the Commissioner of Income Tax(Appeals)-3, Kolkata [hereinafter referred to as ‘CIT(A)’] dated 12.06.2020 for the assessment year 2010-11.
2. The only issue raised by the revenue is against the order of Ld. CIT(A) deleting the penalty of Rs. 70,55,520/- as imposed by the AO u/s 271(1)(c ) of the Income Tax Act, 1961 (hereinafter referred to as the Act) by holding that the notice issued u/s 274 of the Act is defective as it does not specify the limb on which the penalty was proposed to be levied.
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