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2018 (4) TMI 1682 - AT - Income TaxLevy of penalty u/s 271(1)(c) - non specification of charge - Addition of bogus purchase - HELD THAT:- A perusal of the notice issued u/s 274 r.w.s. 271 shows that the Assessing Officer has not struck off the improper words. A perusal of the assessment order shows that the AO has initiated penalty proceedings for furnishing of inaccurate particulars of income. The order u/s 271(1)(c) also shows that the penalty has been levied for furnishing of inaccurate particulars of income. The notice issued u/s 274 r.w.s. 271 shows that the Assessing Officer has not struck off the improper words in the said notice. Therefore, following the decision in the case of M/s SSA’S Emerald Meadows [2016 (8) TMI 1145 - SUPREME COURT]that the very initiation of penalty proceedings is bad in law since the notice issued by the AO u/s 274 r.w.s. 271 does not specify under which limb of section 271(1)(c) the penalty proceedings has been initiated i.e. whether for concealment of particulars of income or furnishing of inaccurate particulars of income - penalty sustained by the ld. CIT(A) in the instant case is not justified. - Decided in favour of assessee.
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