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2024 (2) TMI 153 - ITAT DELHIPenalty levied u/s 271(1)(c) - defective notice - non specification of clear charge - non-strike off of the irrelevant part in the notice - whether the penalty proceedings are initiated on account of concealment of income or on account of furnishing inaccurate particulars of income? - HELD THAT:- On perusal of the notice issued u/s 274 read with section 271(1)(c) of the Act it is noticed that the AO did not strike off the irrelevant limb in the notice. AO did not specify the limb for which the notice u/s 271(1)(c) was issued i.e. either for concealment of income or for furnishing inaccurate particulars of income. The notice was issued mechanically stating that the assessee had concealed particulars of income or furnished inaccurate particulars of income. As could be seen from the above in the case of Mr. Mohd. Farhan A. Shaikh . [2021 (3) TMI 608 - BOMBAY HIGH COURT (LB)] while dealing with the issue of non-strike off of the irrelevant part in the notice issued u/s 271(1)(c) of the Act, held that assessee must be informed of the grounds of the penalty proceedings only through statutory notice and an omnibus notice suffers from the vice of vagueness. Thus notice issued by the Assessing Officer was bad in law if it did not specify under which limb of section 271(1)(c) of the Act the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. Decided in favour of assessee.
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