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2018 (12) TMI 1554 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Non specification of charge - Held that:- Assessing Officer while initiating penalty proceedings has merely mentioned, “penalty proceedings u/s. 274 r.w.s. 271(1)(c) are separately initiated”. The manner in which satisfaction has been recorded and thereafter, penalty has been levied clearly shows that there was ambiguity in the mind of Assessing Officer with respect to charge for which penalty u/s. 271(1)(c) is to be levied. While recording satisfaction the Assessing Officer has omitted to mention charge for levy of penalty. In the case of Commissioner of Income Tax Vs. Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] has held that the assessee should know the grounds which he has to meet specifically. Otherwise, the principle of natural justice is offended. On the basis of such proceedings, no penalty could be imposed on the assessee. Thus, where the Assessing Officer has failed to mention the charge at the time of recording of satisfaction for initiating penalty u/s. 271(1)(c) the penalty proceedings are liable to be quashed - Decided in favour of assessee.
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