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2022 (10) TMI 403 - ITAT SURATPenalty u/s 271(1)(c) - Defective notice u/s 274 - non striking of irrelevant portion of notice - HELD THAT:- As it is settled position of law, as held in the case of Mohd. Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] that where assessment order clearly records satisfaction for imposing penalty on one or other, or both grounds mentioned in section 271(1)(c), a mere defect in notice, not striking off irrelevant matter would vitiate penalty proceedings. Here in the assessee’s case what the talk about striking off irrelevant limb/charge in the penalty notice, the penalty notice itself was not issued to the assessee, before imposition of penalty by ld CIT(A) - Therefore, the penalty proceedings, initiated against the assessee does not have any leg to stand. We note that Tribunal has deleted the quantum addition, vide order in case of assessee [2022 (5) TMI 1461 - ITAT SURAT] - We find that once, the addition made in the assessment order is deleted by Tribunal, the satisfaction of CIT(A) that the assessee has taxable income, is held be wrong. Therefore, penalty imposed on such satisfaction would not survive. Hence, penalty needs to be deleted. Therefore, we delete the penalty imposed u/s 271(1)(c) of the Act. - Decided in favour of assessee.
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