Green Tourist Services P. Ltd vs ACIT: Penalty Appeal for Assessment Year 2015-16

Green Tourist Services P. Ltd vs ACIT: Penalty Appeal for Assessment Year 2015-16

This legal document provides a detailed account of the tribunal decision involving Green Tourist Services Private Limited and the Assistant Commissioner of Income Tax (ACIT), Circle-10(2), New Delhi, regarding penalties levied for the assessment year 2015-16. The case number ITA No.6282/Del/2019 was heard by the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal.

The core issue revolved around the imposition of a penalty under section 271(1)(c) of the Income Tax Act, 1961, which the appellant contested. The dispute was primarily about whether the penalty for concealing income particulars or furnishing inaccurate particulars was justifiably imposed.

During the proceedings, the appellant’s legal counsel argued that the initial notice for the penalty was flawed as it failed to specify which limb of section 271(1)(c) was being invoked—whether for concealment of particulars of income or for furnishing inaccurate particulars of the same. This ambiguity was highlighted as a significant procedural error that impacted the validity of the entire penalty process.

The tribunal noted precedents from higher judicial authorities, including the High Court and the Supreme Court, which have held that the lack of clear specification in the penalty notice can invalidate the penalty proceedings. Aligning with these precedents, the tribunal decided that the penalty notice served to Green Tourist Services was defective and consequently, the penalty imposed by the ACIT was annulled.

The tribunal’s decision to overturn the penalty serves as a reminder of the stringent requirements for procedural correctness in tax penalty proceedings. This case underscores the importance of precise communication in legal notices and the implications of any oversight in fulfilling these legal standards.

The order was pronounced on November 18, 2020, providing relief to Green Tourist Services P. Ltd from the disputed penalty for the concerned assessment year.

Green Tourist Services P. Ltd vs ACIT: Penalty Appeal for Assessment Year 2015-16