Notice us 271(1)(b) on printed format with tick mark without striking off the non applicable clause quashed on the ground that charge was not specific.
ITAT Delhi, in a recent judgment, has quashed notice u/s 271(1)(b) on printed format with only tick mark with striking off the not applicable clause on the ground that the “charge” was not specific. In recent past there had been many decisions whereby notice u/s 271(1)(c) has been quashed on the similar ground.
ABCAUS Case Law Citation:
ABCAUS 1162 (2017) (03) ITAT
Assessment Year : 2007-08
Brief Facts of the Case:
The assessee had inter alia raised the following grounds:
That on the facts of the case and under the law, the penalty order passed u/s. 271(1)(b) is liable to be quashed/ annulled, because the “charge” was not specific.
The AO had initiated penalty proceedings vide notice issued u/s. 274 r.w.s. 271, by simply placing tick mark against the printed line “you have without reasonable failed to comply with a notice u/s. 23(4)/ 23(2) of the Indian Income Tax Act, 1922 or u/s. 142(1)/143(2) of the I.T. Act, 1961.
Observations made by the Tribunal:
The Tribunal found cogency in the submissions that the penalty order passed u/s. 271(1)(b) was liable to be quashed/ annulled, because the “charge” was not specific in the Notice dated 27.3.2015 issued u/s 274 r.w.s. 271, in which AO has simply placed tick mark against the printed line “you have without reasonable failed to comply with a notice u/s. 23(4)/23(2) of the Indian Income Tax Act, 1922 or u/s. 142(1)/143(2) of the I.T. Act, 1961 dated……..
The Tribunal opined that on this legal ground alone, the penalty deserved to be deleted.
Held:
Penalty was deleted. Appeal of the Assessee was allowed.
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