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2017 (2) TMI 1272 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - defective notice - Held that:- In the present case we find that at the time of initiating penalty proceedings the Assessing Officer while recording satisfaction has observed that, “the assessee has concealed the income and has also furnished inaccurate particulars of income within the meaning of section 271(1)(c) of the Act.”. While issuing notice the Assessing Officer has not struck off irrelevant part in the show cause notice issued u/s. 274. From the perusal of notice that the Assessing Officer is not clear as to under what charge penalty has to be levied u/s. 271(1)(c) of the Act. The notice is vague as it fails to clearly spell out the charge for levy of penalty. A further examination of the records show that the observations of the Assessing Officer are inconsistent while recording satisfaction and at the time of passing of the penalty order. The Assessing Officer has levied penalty for furnishing inaccurate particulars of income. The Assessing Officer is incoherent in reasoning for recording satisfaction and in passing the order levying penalty. - Decided in favour of assessee.
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