Case Law Details
Glory Lifesciences Pvt. Ltd. Vs ACIT (ITAT Delhi)
It is an admitted fact that before levy of the penalty A.O. has issued show cause notice Dated 20.06.2014 in all the years in which A.O. has mentioned both the limbs of Section 271(1)(c) of the I.T. Act that assessee have concealed the particulars of your income or furnished inaccurate particulars of such income. Thus the A.O. has not mentioned as to for which limb of Section 271(1)(c) of the I.T. Act penalty shall have to be levied against the assessee. According to Section 274 of the I.T. Act, 1961 no order imposing a penalty under this Chapter unless the assessee has been heard or has been given a reasonable opportunity of being heard. The A.O. in order to give an opportunity of being heard to the assessee issued show cause notice Dated 20.06.2014 for all the assessment years. The Hon’ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows 73 taxmann.com 241 confirmed the Order of the Tribunal by dismissing the Departmental Appeal in which the Tribunal has allowed the appeal filed by the assessee holding that notice issued by the A.O. under section 274 read with Section 271(1)(c) of the I.T. Act to be bad in Law and it did not specify under which limb of Section 271(1)(c) of the I.T. Act penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income.
Considering the issue in the light of above material it is clear that A.O. has issued invalid and defective notices under section 271(1)(c) of the I.T. Act read with Section 274 of the I.T. Act Dated 20.06.2014 before levy of the penalty. Therefore, entire penalty proceedings are vitiated and are liable to be quashed. In view of the above, we set aside the Orders of the authorities below and delete the entire penalty proceedings under section 271(1)(c) of the I.T. Act for the above assessment years.
FULL TEXT OF THE ORDER OF ITAT DELHI
All the appeals by Assessee are directed against the different Orders of the Ld. CIT(A)-24, New Delhi, Dated 29.06.2017, for the A.Ys. 2009-2010 to 2012-2013.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
