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2017 (9) TMI 1764 - AT - Income TaxLevy of penalty u/s 271(1)(c) - non specification of charge - Held that:- CIT vs. Manjunatha Cotton & Ginning Factory (2013 (7) TMI 620 - KARNATAKA HIGH COURT) notice issued by the AO under s. 274 r/w s. 271(1)(c) was bad in law and it did not specify under which limb of s. 271(1)(c) penalty proceedings had been initiated, i.e., whether for concealment of income or furnishing of inaccurate particulars of income. Hon'ble High Court held that matter was covered by the aforesaid decision of Division Bench and therefore, there was no substantial question of law arising for determination. There was no merit in SLP filed by the Revenue and was dismissed by the Hon'ble apex Court which goes in favour of the assessee. In the circumstances and facts of the case, the notice has its inception, is bad in law and penalty so levied is directed to be quashed and the AO does not acquire any jurisdiction to levy penalty under s. 271(1)(c) of the Act, therefore the appeal of the assessee for asst. yr. 2010-11 is allowed.
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