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2017 (6) TMI 397 - ITAT CHANDIGARHLevy of penalty u/s 271(1)(c) - disallowance of foreign travelling expenses - defective notice - Held that:- As perused the copy of notice placed we find that it is a printed Performa wherein the relevant column has not been struck off. Under similar facts the Hon'ble Karnataka High Court in the case of CIT Vs Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT ] has held that the practice of department sending a printed form where all the grounds mentioned u/s 271(1)(c) are outlined would not satisfy requirement of law when the consequences of the assessee not rebutting the initial presumption is serious in nature and he had to pay penalty from 100% to 300% of the tax liability. As the said provisions have to be strictly construed, notice issued u/s 274 should satisfy the grounds which he has to meet specifically, otherwise the principle of natural justice is offended if the show cause notice is vague and on the basis of such provision, no penalty could be imposed on the assessee - Decided in favour of assessee.
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