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2019 (7) TMI 600 - AT - Income TaxPenalty levied u/s 271(1)(c) - addition u/s 68 - defective notice - no proper satisfaction for initiating penalty proceedings by AO - HELD THAT:- AO has failed to come to finding as to which limb of section 271(1)(c) has not been fulfilled by assessee and thus, has not issued proper show cause notice to the assessee in this regard. Penalty has been levied under section 271(1)(c) for furnishing inaccurate particulars of income. Where the AO has failed to give proper show cause notice to assessee vis-à-vis limb in respect of which he wants to initiate penalty proceedings, then in the absence of proper satisfaction, order passed under section 271(1)(c) cannot stand. We find support from the ratio laid down in CIT Vs. Shri Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT] wherein it was held that where there is no proper satisfaction for initiating penalty proceedings and in the absence of proper show cause notice to the assessee, there is no merit in levy of penalty. In the present case, AO has failed to conclude which limb of section 271(1)(c) is applicable, hence order suffers from infirmity. Accordingly, we delete the penalty levied under section 271(1)(c). The grounds of appeal raised by assessee are thus, allowed. - Appeal of assessee is allowed.
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