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2017 (5) TMI 1401 - ITAT KOLKATAPenalty u/s 271(1)(c) - defective notice as it does not clearly strike out the charge of penalty - Held that:- We find that the notice issued u/s 274 of the Act by the AO for levying of the penalty is defective in so far it does not spell out the specific charge for penalty. The specific charge for the penalty whether it is levied for the concealment or furnishing of inaccurate particulars of income must emanate from the penalty notice. In the absence of specific charge in the notice, the several courts have decided the issue in favour of assessee . See Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] - Decided in favour of assessee. Penalty u/s 271(1)(c) - inaccurate particulars of income on account of low GP ratio declared by the assessee which was subsequently reduced by the ld. CIT(A). - A.Y.06-07. - Held that:- The assessee had furnished complete particulars before the authorities below. However, the addition in the hands of the assessee was made by estimating the GP profit on the turnover. In such circumstances, where no concrete evidence was found against the assessee and the addition being based on estimation, there is no merit in the levy of penalty u/s 271(1)(c) of the Act. Accordingly, we direct the Assessing Officer to delete the penalty levied for concealment u/s 271(1)(c) of the Act.- Decided in favour of assessee.
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