Is it mandatory for A.O. to specify the limb or charge for which the penalty is imposed on assessee?

Описание: [2025] 483 ITR 731

(#Delhi #High #Court)

#Principal #Commissioner of #Income-#Tax
V.
#Blackrock #Securities #Pvt. #Ltd.

Rajiv Shakdher and Girish Kathpalia, JJ.

24.11.2023

Playlist: #271(1)(c), #Limb

271: Failure to furnish returns, comply with notices, concealment of income, etc

A.Y: 2014-15/Assessee

Question: Is it #mandatory for A.O. to specify the limb or #charge for which the #penalty is imposed on assessee?

1. The imposition of penalty entails several consequences.

2. The Assessing Officer is required to apply his mind to the material and indicate, clearly, to the assessee what is being put against him.

3. In other words, which limb of section 271(1)(c) of the Income-Tax Act, 1961 is attracted in the given facts and circumstances of the case.

4. This clearly would be necessary as the pecuniary burden that the assessee may be mulcted with could vary, depending on the infraction committed by him.

5. In a given case where concealment has taken place, a heavier burden may be imposed, as compared to a situation where the assessee furnished inaccurate particulars.

6. There may be situation where both limbs are attracted.

7. If that is the situation, the notice should allude to this aspect.

8. Held accordingly dismissing the appeal, that the assessee was entitled to know, clearly, the charge levelled against him.

9. The Tribunal had rightly deleted the penalty because of lack of clarity in the order levying penalty.

10. Even in this assessment order dated 14.03.2015, whereby penalty proceedings were triggered, did not indicate as to which limb of section 271(1)(c) was being triggered qua the assessee.

11. Case relied on:
• CIT V. SSA’s Emeralds Meadows, [2015] 386 ITR (St.) 13 (SC)
• PCIT V. Unitech Reliable Projects Pvt. Ltd. [2024] 462 ITR 307 (Delhi High Court)
• CIT V. Manjunatha Cotton and Ginning Factory, [2013] 359 ITR 565 (Karnataka High Court)

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Link for some important videos:

1) WHETHER TRIBUNAL CAN REMAND MATTER IN ENTIRETY WHERE DEPARTMENT DID NOT FILE CROSS APPEALS?- https://www.youtube.com/watch?v=gkqMk...

2) WHETHER ASSESSEE HAS ALSO TO CHALLENGE THE FINDINGS OF THE A.O THAT NOTICE HAS BEEN SERVED?- https://www.youtube.com/watch?v=XbZWh...

3) WHETHER EXTENDED TIME LIMIT U/S 149(1)(b) CAN BE USED ON THE BASIS OF SALES CONSIDERATION U/S 48?- https://www.youtube.com/watch?v=WuRt9...

4) WHETHER NOTICE SENT TO SECONDARY EMAIL IS VALID IF NOT SENT TO PRIMARY E-MAIL U/S 148?- https://www.youtube.com/watch?v=aAzHE...

5) WHETHER ENTRIES IN BOOKS OF ACCOUNTS CONCLUSIVE TO DETERMINE TAXABLE INCOME OF ASSESSEE?- https://www.youtube.com/watch?v=Rx8JQ...