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2022 (4) TMI 1311 - ITAT PANAJIPenalty u/s 271(1)(c) - penalty proceedings u/s 271(1)(c) was initiated on the basis of an order of assessment r.w.s. 147 of the Act, wherein the returned income has been accepted without any addition - HELD THAT:- We are unable to persuade, as to how in the absence of any addition to the returned income, the conclusion of either concealment of income or furnishing of inaccurate particulars of such income could prudently be drawn. Since the return of income in response to notice u/s 148 was accepted indifferently, there remain no scope for alleging against the assessee, as both concealment of income or furnishing of inaccurate particulars of such fails, consequently the jurisdiction. Therefore, in view of the aforesaid discussion, the issue herein on both legal as well on merits 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. 15/03/2014 issued u/s 274 r.w.s. 271(1)(c) of the Act without specifying any limb or charge vis-à-vis absence of any default on account of acceptance of return indifferently, 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 same is quashed accordingly - Decided in favour of assessee.
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