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2019 (7) TMI 17 - AT - Income TaxPenalty u/s 271(1)(c) - non disclosure of income as sum as received from General Electoral Trust - Defective notice - HELD THAT:- Assessee is a Member of Legislative Assembly. In order to contest the elections she received ₹ 2,00,000/- from General Electoral Trust, Mumbai which was used by her in incurring expenses towards the elections but she did not include the same in her income under a belief that the said amount is not taxable since it was already been spent during the election process. However during the course of assessment proceedings initiated by issuance of notice u/s 148 of the Act and the assessee agreed to include the said amount as income. We find that both the charges i.e. concealment of particulars of income as well as furnishing incorrect particulars of income are mentioned. A.O has failed to level specific charge against the assessee as to whether she has concealed particulars of income or furnished inaccurate particulars of income. In case of such failure the impugned notice issued u/s 274 r.w.s. u/s 271(1)(c) of the Act suffers from a technical defect and as held in the case of PCIT Vs Kulwant Singh Bhatia [2018 (5) TMI 960 - MADHYA PRADESH HIGH COURT] such proceedings initiated by issuance of defective notice u/s 274 r.w.s. 271(1)(c) are liable to be quashed. - Decided in favour of assessee.
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