Sunil Trading Company vs. Income Tax Officer

Parties Involved

Facts Summary

Sunil Trading Company, the appellant, filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 31.12.2025 for Assessment Year 2015-16, in sustaining the penalty levied under section 271(1)(c) of the Income Tax Act, 1961. The appellant contended that the notice issued under section 274 read with section 271(1)(c) of the Act was bad in law as it did not specify whether penalty proceedings were initiated for concealment of particulars of income or for furnishing inaccurate particulars of such income. The appellant also argued that the penalty proceedings were initiated without proper application of mind and in breach of the principles of natural justice.…

Legal Issues

• 1. Whether the notice issued under section 274 read with section 271(1)(c) of the Act is bad in law?
• 2. Whether the penalty order passed under section 271(1)(c) of the Act is bad in law?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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