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2017 (12) TMI 200 - AT - Income TaxPenalty u/s 271(1)(c) - non-specification of the accusation in the notice issued u/s 274 - Held that:- It is not in dispute that in the assessment order it was not specified as to whether the penalty proceedings were intended to be initiated on a single count i.e., for ‘furnishing of inaccurate particulars of income’ or ‘concealment of income’, or for ‘both’. As submitted by the Ld Counsel for the assessee, the notice, which is placed in the paper book, is a standard format signed by the Assessing Officer and forwarded to the assessee which does not indicate as to the reason for initiation of penalty proceedings. No doubt the chronology of events, preceding the process of initiation of penalty proceedings, clearly indicate that the proceedings are meant for levy of penalty on both counts, in which event it may not be necessary to strike off the word “or”, but the fact remains that it was not specified through penalty notice. Thus notice issued by the Assessing Officer has to be determined as a notice issued in violation of principles of natural justice and consequently penalty levied on the strength of such notice deserves to be quashed. - Decided in favour of assessee.
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