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2020 (2) TMI 90 - AT - Income TaxPenalty u/s 271(l)(c) - Defective notice - AO has not struck off the irrelevant clause of the notice - HELD THAT:- Following the decisions rendered in the cases of CIT vs. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] , CIT vs. SSA’s Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] and Pr. CIT vs. Sahara India Life Insurance Company Ltd. . [2019 (8) TMI 409 - DELHI HIGH COURT] we are of the considered view that when the notices issued by the AO are bad in law being vague and ambiguous having not specified under which limb of section 271(1)(c) of the Act, AO has moved the law into motion, the penalty proceedings initiated u/s 271(1)(c) are not sustainable. Not only this even at the time of initiating the penalty proceedings the Assessing Officer has not applied his mind and as such was not aware enough as to whether he is initiating the penalty proceedings for concealment of particulars of income or for furnishing inaccurate particulars of income rather sought to initiate the penalty against the assessee in a mechanical manner - Decided in favour of assessee.
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