Vague Penalty Notice Makes Section 271(1)(c) Proceedings Void: ITAT Rajkot

Klin Industries Vs ACIT (ITAT Rajkot) Defective Penalty Notice Vitiates 271(1)(c) Proceedings – ITAT Rajkot Deletes Penalty Despite AMT Liability The Rajkot Bench of the ITAT allowed the assessee’s appeal and deleted penalty of ₹6.21 lakhs levied u/s 271(1)(c) for AY 2014-15, holding that the penalty notice was defective and the proceedings were invalid in law. The assessee had originally filed a nil return claiming deduction u/s 80JJA. The case was later reopened and assessed u/s 147 r.w.s. 144 by bringing the income to tax under the AMT provisions of section 115JC, followed by levy of ...