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2018 (1) TMI 1481 - AT - Income TaxPenalty u/s 271(1)(c) - penalty was initiated for filing inaccurate particulars of income whereas it was finally imposed for concealment of income - Non specification of charge - HELD THAT:- The undisputed facts are that the AO initiated penalty proceedings for furnishing inaccurate particulars of income whereas the penalty was finally imposed for concealment of income. In our considered view the AO has to specifically point out one of the two limbs on which the penalty is proposed to be levied on the assessee so that the assessee can get full natural justice to respond to the charge for which it is penalised but in the present case this is not so and thus the AO himself was not clear as to which limb penalty was to be imposed. The case of the assessee also gets support from the decision of Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT] wherein it has been held that the AO has to specify the charge on which penalty is being imposed failing which the penalty order cannot be sustained. In the instant case also the AO initiated penalty on one limb but imposed penalty on the other which is wrong and therefore order of CIT(A) cannot be sustained. The case of the assessee is squarely covered by the said decision and we, respectfully following the same, set aside the order of CIT(A) and direct the AO to delete the penalty. - Decided in favour of assessee.
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