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2020 (3) TMI 590 - AT - Income TaxPenalty u/s. 271(1)(c) - Defective notice - specific reason/charge against the Appellant for levy of penalty - inadmissible claim of deduction u/s 10B - HELD THAT:- In the instant case, the AO had issued a show-cause notice u/s 274 r.w.s 271 dated 28.01.2014 and served it on the assessee. There was no response by the assessee to that show-cause notice. Thereafter the AO issued another show-cause notice dated 02.07.2014 to the assessee. In response to it the assessee filed a reply date 10.07.2014 before the AO. As mentioned earlier, the AO has initiated the penalty proceedings not only for furnishing inaccurate particulars of income but also for having concealed the income and subsequently levied penalty having considered the above two ingredients. Therefore following the order in Samson Perincherry [2017 (1) TMI 1292 - BOMBAY HIGH COURT] and in Mak Data P. Ltd. [2013 (11) TMI 14 - SUPREME COURT] we hold that there is no technical defect in initiating the penalty proceedings u/s 271(1)(c) of the Act. Thus the first ground of appeal is decided against the assessee. Inadmissible claim of deduction u/s 10B - In the instant case, as mentioned earlier the appellant filed a letter dated 14.12.2012 intimating the revision of its return filed on 05.12.2012 u/s 139(5) and the reasons for revision of the said original return. The AO accepting the said revised return passed an assessment order u/s 143(3) without making any further adjustments, except by observing at para 4 that by putting inadmissible claim of deduction u/s 10B, the assessee has not only furnished inaccurate particulars of income but also concealed income within the meaning of section 271(1)(c) of the Act. It is relevant to mention here that the AO accepted the revised return and made assessment. If he accepted the revised return, there was no question of making inadmissible claim of deduction u/s 10B in such revised return. In fact, there is no concealment or inaccurate furnishing of income in such revised return. We delete the penalty levied by the AO u/s 271(1)(c) - Decided in favour of assessee
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