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2017 (9) TMI 963 - ITAT DELHIPenalty under section 271(1)(c) - validity of notice u/s 274 - bonafide explanation - false claim made by assessee - Held that:- Manjunath Cotton and Ginning Factory (2013 (7) TMI 620 - KARNATAKA HIGH COURT ) and held that in absence of specifying the limb of the 271(1)(c) of the Act under which penalty is to be levied, the notice under section 274 read with section 271(1)(c) of the Act was bad in law. We find that the assessee has not filed before us the copy of notice under section 274 read with section 271(1)(c) of the Act issued in the case of the assessee. In absence of a copy of such a notice, the decisions relied upon by the Ld. counsel cannot be applied in the case of the assessee. We also note that the issue of specifying charges in the notice under section 274 read with section 271(i)(c) of the Act was not raised specifically before the Ld. CIT- (A) and hence he has not adjudicated on this issue. Further, we find that in the assessment order as well as in penalty order, the Assessing Officer has clearly specified the charges for initiating penalty u/s 271(1)(c) of the Act. We also note that the Ld. CIT-(A) following the decision of the Hon’ble Delhi High Court in the case of Madhushree Gupta Vs. CIT (2009 (7) TMI 38 - DELHI HIGH COURT) has already rejected the argument of not mentioning in the impugned penalty order as to whether the penalty was levied on account of concealment or on account of furnishing of inaccurate particulars. We agree with the finding of the Ld. CIT-(A) that the assessee being a part of a large industry group having the assistance of lawyers, professionals and chartered accountants, cannot be allowed to shift the burden on the accountant, who being an employee of the assessee was not having any choice except filing affidavit. The Ld. CIT- (A) has also pointed out that it is not the case of the assessee that income from house property was declared for first-time in the year under consideration. The Ld. counsel has failed to rebut any of the above finding of the Ld. CIT-(A). The claim of depreciation and repair & maintenance expenses made in return of income is a clear case of false claim by the assessee and no bonafide explanation has been given by the assessee. - Decided against assessee.
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