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2021 (4) TMI 167 - ITAT DELHIPenalty levied u/s 271(1)(c) - undisclosed LTCG - Notice under Section 148 issued and in response to the notice assessee submitted a return declaring long term capital gain and other interest income - penalty imposed as assessee has not filed his return of income voluntarily, but after re-opening of the assessment under Section 147 - In the penalty order the AO levied penalty for furnishing inaccurate particulars of income and the CIT (Appeals) confirmed the penalty for concealment of income - HELD THAT:- The issue is squarely covered by the decision of Hon'ble Delhi High Court in Pr. CIT Vs. Sahara India Life Insurance Corporation of India Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] wherein it has been held that notice issued for imposing the penalty would be bad in law if it does not satisfy the specific charge under which the penalty proceedings had been initiated i.e. for concealment of income or for furnishing inaccurate particulars of income. Same is also the decision in CIT Vs. Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT]wherein it has been held that the notice issued by the AO would be bad in law if it did not specify for which limb of section 271(1)(c) of the Act, penalty proceedings are initiated. Also see M/S SSA’S EMERALD MEADOWS [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] As AO levied penalty for furnishing inaccurate particulars of income and the CIT (Appeals) confirmed penalty for concealment of income. In view of the above inconsistency and binding judicial decisions cited above, we reverse the orders of the lower authorities and direct the AO to delete the penalty under Section 271(1)(c) - Decided in favour of assessee.
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