Section 271(1)(c) Penalty Invalid Without Specific Grounds in SCN: Calcutta HC

PCIT-1 Vs Thakur Prasad Sao & Sons. Pvt. Ltd. (Calcutta High Court) Calcutta High Court recently addressed a significant question regarding the validity of penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961. The central issue in the case, PCIT-1 Vs Thakur Prasad Sao & Sons. Pvt. Ltd., for assessment years 2006-07 and 2007-08, was whether a penalty imposed under this section is invalid if the show-cause notice fails to specifically detail the grounds for the proposed penalty. Background of the Case The matter stems from a search and seizure operation conducted by th...