Non striking of applicable limb of penalty clause u/s 271(1)(c) in notice-Supreme Court dismisses SLP of the Income Tax Department
ABCAUS Case Law Citation
ABCAUS 3426 (2020) (11)
Important case law relied upon by the parties:
Commissioner of Income Tax v/s Shri Samson Perinchery
Principal Commissioner of Income Tax v/s New Era Sova Mine
In a recent case, the Hon’ble Supreme Court have dismissed the Special Leave Petition of the Income Tax Department challenging the decision of the Hon’ble High Court on the issue of non striking of the applicable limb in penalty notice u/s 271(1)(c).
Both the CIT(A) and the Tribunal had observed that in the notice issued to the assessee u/s 274, the Assessing Officer (AO) had not striked down the relevant portion of the printed form in order to indicate whether the satisfaction is based upon the concealment of particulars  or furnishing of inaccurate particulars.
The Hon’ble High Court held that there was no record of satisfaction by the AO that there was any concealment of income or that any inaccurate particulars were furnished by the assessee which is sine qua non for initiation of penalty proceedings.
The Hon’ble High Court, in the absence of such satisfaction, held that the lower authorities had correctly ordered the dropping of penalty proceedings against the assessee.
The Hon’ble Supreme Court dismissed the SLP of the Department stating that there was no reason to interfere in the matter.
Download Full Judgment Click Here >>
- Tax Authorities should charge legitimate taxes instead of punishing bonafide mistakes
- SEBI cautions public regarding dealing in ‘Digital Gold’ or ‘E-Gold’
- Assessee can challenge the validity of any order in the collateral proceedings – ITAT
- Reopening quashed as Form No. 10 have little space to fill reasons of accumulation u/s 11(2)
- Stamp duty valuation or classification for fiscal purposes not change character of Agri land
