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2017 (8) TMI 1123 - ITAT MUMBAILevy of penalty u/s 271(1)(c) - validity of notice - non application of mind by AO - non struck off all irrelevant portion in the notice so as to charge the assessee whether he proposed to levy penalty on concealment of particulars of income or furnishing of inaccurate particulars of income - Held that:- on perusal of notice issued by the AO u/s 274 r.w.s. 271(1)(c) we find that the notice is issued in a printed form without specifying on which limb the AO is proposed to initiate the penalty. Sending the notice in a printed form of notice where all the grounds mentioned in section 271(1)(c), are mentioned, would not satisfy the requirement of law. Even in the notice issued u/s 274, the AO mentioned both the grounds, i.e. concealment of income or furnishing of inaccurate particulars of income, but he has levied penalty for furnishing of inaccurate particulars of income. From the above, it is clear that the AO has not arrived at a satisfaction before initiation of penalty proceedings. Notice issued by the AO u/s 274 r.w.s. 271(1)(c) is vague in nature which did not specify as to whether penalty proceedings is initiated for concealment of particulars of income or for furnishing inaccurate particulars of income and hence, the notice issued u/s 274 r.w.s. 271(1)(c) is invalid and consequent initiation of penalty proceedings is absurd and redundant. Therefore, the consequent levy of penalty u/s 271(1)(c) in all the cases under appeal is void ab initio; hence the penalty orders are hereby quashed. - Decided in favour of assessee.
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