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2022 (4) TMI 178 - ITAT RAIPURPenalty u/s 271(1)(c) - Non specification of clear charge - defective notice u/s 274 - HELD THAT:- Hon'ble Karnataka High Court in the case of “S Chandrashekar Vs ACIT”, [2017 (2) TMI 1127 - KARNATAKA HIGH COURT] wherein a notice u/s 274 r.w.s. 271(1)(c) of the Act was issued in printed form without specifying the grounds of initiation of penalty proceedings, was held to be invalid and untenable in law. In omnibus, as noted by the Hon'ble Supreme Court in the case of Dilip N. Shroff [2007 (5) TMI 198 - SUPREME COURT] the quasi-criminal proceedings u/s 271(1)(c) of the Act ought to comply with the principles of natural justice, and in the present case, considering the observations of the Assessing Officer in the assessment order alongside his action of issuing the notice without any limb or charge being made against the assessee qua section 271(1)(c) of the Act establishes uniform stance and therefore the proceedings suffered from non- compliance with principles of “audi alteram partem”. Therefore, in view of the aforesaid discussion, the issue herein stands concluded in favour of the assessee and nothing contrary has been shown to us in the present facts which would warrant our taking a view different from Hon'ble Karnataka High Court in the case of “S Chandrashekar Vs ACIT”[2017 (2) TMI 1127 - KARNATAKA HIGH COURT] Since the provision of section 271(1)(c) is calamitous, albeit commercial, consequences, the provision is mandatory and brooks no trifling or dilution therewith, as a result we are of the considered view that, having regard to the fact that in the instant case the SCN dt 14/01/2015 issued u/s 274 r.w.s. 271(1)(c) of the Act without specifying any limb or charge, is invalid and untenable in the eyes of law, consequently the penalty imposed u/s 271(1)(c) of the Act is bad in law and hence quashed accordingly. - Decided in favour of assessee.
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