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2019 (11) TMI 1093 - ITAT JAIPURPenalty u/s 271AAB - admission of undisclosed income - assessment u/s 153B - defective notice - whether penalty is mandatory in nature and not discretionary - as challenged show cause notice issued u/s 274 r.w.s 271AAB the AO has not specified the default of the assessee and the limb under which the penalty was proposed to be levied - HELD THAT:- In view of the decision of the Coordinate Bench as well as various other judgments including the judgment of Seveta Constructions Co. Pvt. Ltd. [2016 (12) TMI 1603 - RAJASTHAN HIGH COURT] and CIT vs. Manjunatha Cotton & Ginning Factory Ltd. [2013 (7) TMI 620 - KARNATAKA HIGH COURT] hold that the initiation of penalty proceedings under section 271AAB without specifying the default as well as the particular clause of section 271AB(1) under which the penalty was proposed to be levied, the same is very vague and silent, not making the assessee known about the charge attracting the penalty under section 271AB of the Act. Hence the initiation of penalty proceedings is not valid and consequently the penalty order passed under section 271AAB is liable to be quashed. - Decided in favour of assessee.
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