St. Joseph’s Educational Trust v. DCIT (2025) 236 TTJ 507 / 175 taxmann.com 284 / (2026] 133 ITR 328 (Chennai)(Trib) St.Joseph’s Institute of Science & Technology trust v.Dy.CIT 2025) 236 TTJ 507 / 175 taxmann.com 284 / (2026] 133 ITR 328 (Chennai)(Trib)

S. 271AAB: Penalty-Search initiated on or after 1st day of July 2012-Not specifying the charge-Omnibus notice betrays application of mind by the AO-Entire penalty proceedings right from issue of notice to imposition of penalty are ab initio void-Penalty quashed. [S.274]

 

Tribunal held that since the search was initiated against the assessee on 7th Nov., 2019, the AO did not have jurisdiction to issue notice under s. 271AAB(1); AO ought to have issued under sub-s. (1A) of s. 271AAB and also mentioned the specific limb cl. (a) or cl. (b) of s. 271AAB(1A) under which the assessee is being proceeded against for the levy of a penalty.  AO having wrongly issued notice under s. 271AAB(1), the entire penalty proceedings are ab initio void and, therefore, quashed. (AY. 2018-19, 2020-21)

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