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2018 (5) TMI 1863 - AT - Income TaxLevy of penalty u/s 271(1)(c) - non specification of charge - AO not struck off the inappropriate words in the penalty notice - Addition u/s 68 since the assessee could not satisfactorily explain the loan of ₹ 20,00,000/- obtained from Shri Sanjay Mongia - HELD THAT:- A perusal of the assessment order shows that the AO at the end of the assessment order has mentioned “penalty proceedings u/s 271(1)(c) have separately been initiated”. This does not show as to whether the penalty has been initiated for furnishing of inaccurate particulars of income or for concealment of income. As mentioned earlier, the Assessing Officer has not struck off the inappropriate words in the penalty notice issued u/s 274 r.w.s. 271 of the I.T. Act. As relying on SSA'S EMERALD MEADOWS [2016 (8) TMI 1145 - SUPREME COURT]very initiation of penalty proceeding is bad in law since notice issued by the Assessing Officer u/s 274 r.w.s. 271 does not specify under which limb of section 271(1)(c), the penalty proceeding has 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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