Show cause notice issued under Section 274 of IT Act 1961 should clearly mention the charge of offence

Income Tax Appellate Tribunal, Kolkata: While deciding the question whether notice issued under Section 274 read with Section 271(1) (c) of Income Tax Act, 1961 should explicitly mention, as in whether charge is of inaccurate particulars of income or concealment of income, a 2-Member Bench held the issue in affirmative.

A penalty of Rs 2,04,180 was imposed on the petitioner for concealment of income by an assessment order. The petitioner assessee thereafter, approached the Commissioner of Income Tax (Appeals) that, the show cause notice failed to mention whether it was a case of concealment of income or furnishing inaccurate particular of income, wherein it was held to attracts both the charges.

The Tribunal after appreciating the facts of the case and giving due consideration to the submissions of both the parties held, that the notice issued to the petitioner assessee did not mention the charge of offence committed by the assessee therefore, making the said notice defective. The appeal was accordingly allowed. [Civtect India Pvt. Ltd. Subash Agarwal & Associates v. CIT, 2018 SCC OnLine ITAT 456, dated 18-07-2018]

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