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2023 (7) TMI 854 - ITAT DELHIPenalty u/s 271(1)(c) - concealment of income while passing the assessment order - defective notice u/s 274 - non specification of clear charge - HELD THAT:- In ‘CIT and Another vs. Manjunath Cotton & Ginning Factory’ [2013 (7) TMI 620 - KARNATAKA HIGH COURT] held notice u/s 274 read with section 271(1)(c) of the Act should specifically state the grounds mentioned in section 271(1)(c) of the Act, i.e., whether it is for concealment of income or for furnishing of inaccurate particulars of income. Sending printed form, where all the grounds mentioned would not satisfy the requirement of law. The assessee should know the grounds which he has to meet Otherwise, the principles of natural justice is offended. On the basis of such proceedings, no penalty could be imposed to the assessee. Penalty proceedings are distinct from assessment proceedings, though it emanates from the assessment proceedings; still it is separate and independent proceedings all together. When the notice issued by the AO is bad in law being vague and ambiguous having not specified under which limb of section 271(1)(c) of the Act the penalty notice has been issued, the penalty proceedings initiated u/s 271(1)(c) are not sustainable. Decided in favour of assessee.
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