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2018 (7) TMI 123 - AT - Income TaxPenalty u/s 271(1)(c) - invalid notice - non mentioning of reasons for imposing penalty - Held that:- A perusal of the notice issued u/s 274 read with section 271(1)(c) as appearing on page 6 of the paper book shows that notice has been issued in mechanical manner by merely filling up the format of the notice and it is not clear as to whether the penalty is proposed to be imposed for concealment or for furnishing inaccurate particulars as the relevant portions in the notice have been crossed out. The assessment order dated 30.12.2010 passed u/s 143(3) / 153A of the Act mentions initiation of penalty proceedings u/s 271(l)(c) of the Act for concealment of income and furnishing of inaccurate particulars. The penalty order dated 20.03.2014 passed u/s 271(l)(c) of the Act mentions that the assessee is liable to be penalized u/s 271(1)(c) of the Act but does not specify whether the penalty is being imposed for concealment or for furnishing inaccurate particulars. Concealment and furnishing inaccurate particulars are different. The AO, while issuing notice, has to come to the conclusion as to whether it is a case of concealment of income or whether it is a case of furnishing of inaccurate particulars. Levy of penalty has to be clear as to the limb for which it is levied and the position being unclear penalty is not sustainable. Mere filling up of the standard proforma without striking of the relevant clauses will lead to inference as to non application of mind. - Decided in favour of assessee
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