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2019 (7) TMI 1682 - AT - Income TaxLevy of penalty u/s 271(1)(c) - addition made during the course of assessment, which were confirmed by the appellate authority - non specification of charge - assessment was framed u/s 153A r.w.s. 143(3) of the Act wherein addition was made on account of undisclosed income as well as low household withdrawals - HELD THAT:- It is only when the authority invested with the requisite power is satisfied that either of the two events existed in a particular case that proceedings u/s. 271(1)(c) are initiated. This pre-requisite should invariably be evident from the notice issued u/s. 274 r.w.s. 271 which is the jurisdictional notice, for visiting an assessee with the penal provision. The intent and purpose of this notice is to inform the assessee as to the specific charge for which he has been show caused so that he could furnish his reply without any confusion and to the point. In the present case, neither the assessee nor anyone else could make out asto whether the notice u/s. 274 r.w.s. 271 (1)(c) of the Act was issued for concealing the particulars of income or for furnishing inaccurate particulars of such income disabling it to meet with the case of the Assessing Officer. There are a catena of judgments highlighting the necessity for identifying the charge for which the assessee is being visited and in all those decisions, Hon'ble Courts have repeatedly held that where the jurisdictional notice is vague, similar to the one in the present case, the consequent levy cannot be sustained. No merit for the penalty so imposed, accordingly, AO is directed to delete the penalty so imposed u/s. 271(1)(c) of Act. - Decided in favour of assessee.
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