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2019 (8) TMI 190 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - non specification of charge - non striking irrelevant portion of the notice - HELD THAT:- As carefully gone through the notice issued u/s. 274 r.w.s. 271 of the Act narrated in para 4 of this order. As seen from the above notice issued u/s. 274 of the Act, 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) of the Act, 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 [2016 (8) TMI 1145 - SC ORDER] Penalty proceedings initiated by the AO is void ab initio and allow the appeal of the assessee. Since we have quashed the penalty proceedings itself, we refrain from adjudicating the other grounds of appeal raised by the assessee.- Appeal of the assessee is allowed.
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