Case Law Details
Bengal Bonded Warehouse Ltd. Vs ACIT (ITAT Kolkata)
We have heard the rival contentions and perused the material on record including the impugned notice u/s 274 read with Section 271(1)(c ) dated 31.3.2015. We observe that the notice u/s 274 read with Section 271(1)(c ) dated 31.3.2015 was 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.
The AO finally imposed penalty u/s 271(1)(c ) of the Act of Rs. 4,04,350/- being 100% of the tax sought to be evaded by the assessee for furnishing of inaccurate particulars and concealment of income.
The ld CIT(A) confirmed the order of AO imposing the penalty by holding that the imposition of penalty is imperative once the it is established that assessee has deliberately and consciously furnished in accurate particulars of income.
We note that even ld CIT(A) has also failed to appreciate the legal issue and messed up both limbs together and therefore we are not in agreement with the conclusion of the ld CIT(A).
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