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2015 (7) TMI 601 - AT - Income TaxPenalty u/s. 271(1)(c) - interest so earned by the assessee had not been offered to tax by the assessee in the returns of income filed for A.Ys. 2004-05 to 2008-09. Similarly, the assessee also did not declare interest received on SB account for A.Ys. 2004-05 to 2008-09 - Held that:- The show cause notice u/s. 274 of the Act is defective as it does not spell out the grounds on which the penalty is sought to be imposed. In our view, the aforesaid defect cannot be said to be curable u/s. 292BB of the Act, as the defect cannot be said to be a notice which is in substance and effect in conformity with or according to the intent and purpose of the Act. Following the decision of the Hon’ble Karnataka High Court in the case of CIT & Anr. v. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT ], we hold that the orders imposing penalty in all the assessment years have to be held as invalid and consequently penalty imposed is cancelled. - Decided in favour of assessee.
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