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2019 (5) TMI 1053 - ITAT MUMBAIPenalty u/s 271(1)(c) - defective notice - non specification of charge - penalty was initiated for furnishing of inaccurate particulars of income but finally levied for concealment of income - notice u/s 274 read with section 271 issued in a mechanical manner without application of mind as the AO has not specified one the two limbs on which penalty was proposed to be levied - HELD THAT:- AO in not striking off the inappropriate limb in the notice and initiating the penalty on one limb and imposing penalty finally on the other limb is clear cut in violation of principle of natural justice as the assessee was deprived of reasonable opportunity to respond and deal with the particular charge on which the penalty was levied. In our view, the penalty order in such a scenario is clearly bad in law and can not be sustained. The case of the assessee is clearly supported by the decision relied upon by the assessee as stated hereinabove in the case of Shri Samson Perinchery vs. CIT [2017 (1) TMI 1292 - BOMBAY HIGH COURT] and CIT vs. Mrs. Piedade Perinchery [2017 (1) TMI 1458 - BOMBAY HIGH COURT] has held that where the AO has failed to state particularly the one of the two limbs on which the penalty was proposed to be levied then the penalty order would be bad in law as the assessee was not given proper opportunity to respond to the charge on which the penalty was levied. We hereby direct the AO to delete the penalty. - Decided in favour of assessee.
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