Notice which is issued to the assessee must indicate whether the Assessing Officer is satisfied that thecaseof the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded. In both Samson Perinchery and New Era Sova Mine (supra), the notices issued had not struck off the portion which were inapplicable. From this, the Division Bench concluded that there was no proper record of satisfaction or proper application of mind in matter of initiation of penalty proceedings.
Section 271(1)(c) of the Income-tax Act, 1961—Penalty – Revenue filed appeal before High Court against the order of Tribunal in confirming the deletion of the penalty levied u/s. 271(1)(c) of the Act by CIT(A). The notice which is issued to the assessee must indicate whether the AO is satisfied that the case of the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded. In the impugned notice issued to the assessee, the Deputy Commissioner had not even bothered to strike 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. Thus, both the CIT(A) as well as the ITAT categorically held that there is no record of satisfaction by the AO that there was any concealment of income or that any inaccurate particulars were furnished by the assessee and therefore dropped the penalty levied u/s. 271(1)(c) of the Act. High Court dismissed the appeal of the revenue. - PR. CIT V/s GOLDEN PEACE HOTELS AND RESORTS PVT. LTD. - [2020] 22 ITCD Online 015 (BOM
Notice which is issued to the assessee must indicate whether the Assessing Officer is satisfied that thecaseof the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded. In both Samson Perinchery and New Era Sova Mine (supra), the notices issued had not struck off the portion which were inapplicable. From this, the Division Bench concluded that there was no proper record of satisfaction or proper application of mind in matter of initiation of penalty proceedings.
Section 271(1)(c) of the Income-tax Act, 1961—Penalty – Revenue filed appeal before High Court against the order of Tribunal in confirming the deletion of the penalty levied u/s. 271(1)(c) of the Act by CIT(A). The notice which is issued to the assessee must indicate whether the AO is satisfied that the case of the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded. In the impugned notice issued to the assessee, the Deputy Commissioner had not even bothered to strike 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. Thus, both the CIT(A) as well as the ITAT categorically held that there is no record of satisfaction by the AO that there was any concealment of income or that any inaccurate particulars were furnished by the assessee and therefore dropped the penalty levied u/s. 271(1)(c) of the Act. High Court dismissed the appeal of the revenue. - PR. CIT V/s GOLDEN PEACE HOTELS AND RESORTS PVT. LTD. - [2020] 22 ITCD Online 015 (BOM