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2017 (9) TMI 645 - AT - Income TaxPenalty u/s 271(1)(c) - validity of notice - issuing notice U/s 274 without mentioning the limb of section 271 under which penalty is proposed to be levied - Non-striking of one of the limbs in the notice - non specific charge mentioned by the Assessing Officer for imposing of penalty - Held that:- As perused the penalty notice issued u/s 274 r/w 271(1)(c) and also the Assessment Order passed u/s 143(3) of the Act. It is abundantly clear from these that the Assessing Officer failed to strike of the relevant limb in initiating the penalty proceedings, charge is not made clear. Similar situation was considered by the Coordinate Bench in the case of Meherjee Cassinath Holdings Private Limited v. ACIT (2017 (5) TMI 904 - ITAT MUMBAI ) and the implication of non-striking of the relevant portion of the notice and not specifying the charge while imposing the penalty u/s 271(1)(c). It was held that if there is no specific charge mentioned by the Assessing Officer for imposing of penalty, the penalty cannot be sustained. Non-striking of one of the limbs in the notice suffers from vice of non-application of the mind having regard to the ratio of the decision in the case of the Dilip N. Shroff (2007 (5) TMI 198 - SUPREME Court) and Bombay High Court in the case of Samson Perinchery (2017 (1) TMI 1292 - BOMBAY HIGH COURT ). Thus we delete the penalty levied u/s. 271(1)(c) of the Act on the preliminary point. - Decided in favour of assessee.
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