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2017 (12) TMI 1397 - ITAT PUNEPenalty levied u/s.271(1)(c) - defective notice - Held that:- AO has not bothered to specify the limb or stuck off an inappropriate limb of the provisions of section 271(1)(c) of the Act. It shows that the AO has not applied his mind to the fact for which reason of the default, the penalty notices were issued. We find the penalty order of the AO falls short of legal requirement on the issue under discussion. Initiation of penalty proceedings in this case done in a general sense and the levy of penalty is done for both the limbs and such orders are bad in law. Usage of expressions like “or” and “and” confirm the ‘ambiguity’ in the mind of AO. With such expressions the penalty is not sustainable. In view of the above discussion, we uphold the order of the CIT(A) deleting the penalty levied by the AO for both the assessment years. Accordingly, the grounds raised by the Revenue for A.Yrs. 2010-11 and 2011-12 are dismissed.
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