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2018 (8) TMI 2125 - AT - Income TaxLevy of penalty u/s 271(1)(c) - defective notice u/s 274 - non specification of clear charge - assessees are employees of SAIL[Bhilai Steel Plant] and derive income from salary as claimed the perquisites received from the employer as exempt - AO reopened all these cases by issue of notice u/s 148 and respective employees offered the entire income and paid the taxes thereon and repaid refunds issued earlier on the basis of the original returns of income - HELD THAT:- A perusal of the notice issued u/s 274 r.w.s. 271 in each case shows that the inappropriate words in the said notice has not been struck off i.e. the notice does not specify under which limb of section 271(1)(c) the penalty proceedings had been initiated i.e. whether for concealment of income or for furnishing of inaccurate particulars of income. Since in the instant case, AO has not struck off the inappropriate words in the notices issued u/s 274 r.w.s. 271, therefore, the notice does not specify under which limb of section 271(1)(c) the penalty proceedings had been initiated i.e. whether for concealment of income or for furnishing of inaccurate particulars of income. Therefore, the penalty proceedings become bad in law. Decided in favour of assessee.
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