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2018 (8) TMI 1486 - AT - Income TaxPenalty levied u/s. 271(1)(c) - defective notice - assessee was working as Principal of Homeo Medical College, being a Government medical officer, was getting huge income from private practice in the income tax returns filed - assessee did not file return of income for the AY 2002-03 in time but only filed it on 09/04/2003, i.e., after the date of survey - Held that:- As seen from the notice issued u/s. 274 of the Act, the AO has not struck out the irrelevant portion of the notice. In other words, he has not specified whether he is levying penalty for concealment of particulars of income or furnishing of inaccurate particulars of income. As held by the Karnataka High Court in the case of CIT & Anr. vs. M/s. SSA’s Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] that the notice issued by the Assessing Officer u/s. 274 r.w.s 271(1)(c) is to be bad in law as it did not specify which limb of section 271(1)(c), the penalty proceedings had been initiated, i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. This view was confirmed by the Supreme Court in the same case, i.e., CIT & Anr. vs. M/s. SSA’s Emerald Meadows reported in [2016 (8) TMI 1145 - SUPREME COURT] Thus we are inclined to hold that the penalty proceedings initiated by the AO is ab initio void and allow the appeal of the assessee
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