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2019 (5) TMI 284 - ITAT INDOREPenalty u/s 271(1)(c) - deemed dividend addition u/s 2(22)(e) - Non specification of charge - additions made for treating the transactions of current in nature as loan to the assessee by M/s SSP Enterprises P Ltd - HELD THAT:- From perusal of the show cause notices we find that the A.O has merely mentioned the section but the specific charge i.e. whether the penalty have been initiated for concealment of particulars of income or for furnishing inaccurate particulars of income has not been mentioned. Now whether such type of notice which does not speak about the specific charge leveled against the assessee is valid and tenable in the eyes of law needs to be examined. As relying on SHRI VARAD MEHTA VERSUS DCIT 1 (1) , BHOPAL [2018 (12) TMI 1091 - ITAT INDORE] notice issued u/s 271(1)(c) dated 29.04.2015 is invalid, untenable and suffers from the infirmity of non application of mind by the AO. We accordingly direct to delete the penalty for Assessment Years 2012-13 imposed u/s 271(1)(c) on this ground itself. We accordingly allow the additional legal ground raised by the assessee on the legality of the penalty proceedings initiated u/s 271(1)(c) of the Act. Since the issue of penalty u/s 271(1)(c) has been dealt by us on the preliminary points, other arguments of the assessee dealing with the merits of the levy of penalty are not been dealt with, as the same are rendered academic in nature and thus the appeal of the assessee for the Assessment Year 2012-13 is allowed. - Decided in favour of assessee.
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