Section 271(1)(c) Penalty Quashed For Vague Income Tax Notice

Singh Consultancy Pvt. Ltd. Vs ITO (ITAT Delhi) In a significant ruling delivered on April 9, 2021, the Income Tax Appellate Tribunal (ITAT), Delhi Bench, has set aside a substantial penalty of Rs. 74,12,046 levied against Singh Consultancy Pvt. Ltd. for the Assessment Year 2009-10. The Tribunal’s decision, stemming from an appeal against an order by the Commissioner of Income Tax (Appeals) [CIT(A)], was primarily based on a critical procedural flaw: the ambiguity and vagueness of the penalty initiation notice issued under Section 271(1)(c) read with Section 274 of the Income Tax Act, 19...