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2018 (2) TMI 1912 - ITAT MUMBAIPenalty u/s 271(1)(c) - defective notice - non recording any satisfaction - non striking irrelevant portions in notice - HELD THAT:- The undisputed facts are that the AO, while framing the assessment under Section 143(3) of the Act initiated penalty proceedings for concealment of income and filing of inaccurate particulars of income, thus thereby initiating penalty proceedings for both the limbs. Similarly, while issuing penalty notice under Section 274 r.w.s. 271(1)(c) of the Act dated 27.12.2010 did not strike off one of the two limbs which was relevant thus the assessee was not appraised of the exact charge on which penalty was proposed to be levied. Thus, we are of the view that it is mandatory on the part of the AO to specify specifically the charge on which penalty is proposed to be levied and non striking of the relevant portion would go to the root of the jurisdiction of the AO to pass penalty order. The case of the assessee is clearly covered by the judgements of the Hon'ble Karnataka High Court in the cases of Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] and M/S SSA’S EMERALD MEADOWS [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] - Decided in favour of assessee.
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