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2019 (2) TMI 51 - AT - Income TaxPenalty u/s.271(1)(c) - Defective notice - non specification of charge - mandation of specification of correct limb - Held that:- It is evident that at the time of initiation of penalty proceedings in the assessment, AO has not mentioned any limb. However, at the time of levy of penalty, the AO mentioned that “this is a fit case for levy of penalty in terms of Explanation 1 to Section 271(1)(d) for filing of inaccurate particulars. This manner of recording of satisfaction suggests the existence of ambiguity with reference to applicability of specific limb. It is a settled legal proposition that the AO is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty. This view of ours is fortified by the judgment in the case CIT Vs. Shri Samson Perinchery (2017 (1) TMI 1292 - BOMBAY HIGH COURT) as well as of CIT Vs. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT]. In view of the above deliberation on this issue, without going into the merits of the penalty, we are of the opinion that the penalty order is liable to be quashed on this legal issue. - Decided in favour of assessee.
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