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2018 (6) TMI 1116 - ITAT MUMBAIPenalty u/s 271(1)(c) - revision order passed under section 263 - disallowance made in the original assessment order passed under section 143(3) - status of the original assessment order on the date penalty order passed - Held that:- On the date the penalty order under section 271(1)(c) of the Act was passed, the original assessment order dated 7th December 2011 was not in existence as it was set aside / revised by the learned Commissioner under section 263 of the Act vide order dated 14th March 2014. That being the case, the Assessing Officer could not have passed the impugned penalty order under section 271(1)(c) of the Act in the absence of the original assessment order passed under section 143(3) of the Act. Subsequent setting aside of the revision order passed under section 263 of the Act by the Tribunal vide order dated 4th November 2015 is not material considering the fact that it has to be seen what is the status of the original assessment order on the date penalty order was passed by the Assessing Officer. Since, on the date of penalty order, the original assessment order under section 143(3) of the Act was not in existence, the impugned penalty order is also invalid. For this reason, the penalty order passed under section 271(1)(c) of the Act is legally unsustainable. Invalid notice - Assessing Officer has imposed penalty under section 271(1)(c) of the Act alleging furnishing of inaccurate particulars of income, however, in the show cause notice dated 7th December 2011 issued under section 274 r/w 271(1)(c) of the Act the Assessing Officer has not struck off the inappropriate words to indicated the specific limb of section 271(1)(c) of the Act violated by the assessee to attract imposition of penalty. That being the case, impugned penalty order passed under section 271(1)(c) of the Act cannot be sustained - Decided in favour of assessee.
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