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2016 (2) TMI 1322 - AT - Income TaxPenalty levied u/s. 271(1) (c) - Defective notice - non specification of charge - addition made by the ld.AO towards cash deposits in the bank account u/s. 68 and interest income from deposits - HELD THAT:- We find lot of force in the arguments of the assessee that the ld.AO had not mentioned any specific charge on which the said penalty proceedings have been initiated by him either in the assessment order or in the show-cause notice issued u/s. 271(1) ( c) r.w.s 274 of the Act. We hold that mentioning specific charge is pre-requisite for initiating the penalty proceedings on the assessee. 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. Following the decision of MANJUNATHA COTTON AND GINNING FACTORY, MANJUNATH GINNING AND PRESSING, VEERABHADRAPPA SANGAPPA AND CO., V.S. LAD AND SONS, G.M. EXPORT [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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