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2020 (10) TMI 78 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - inappropriate words have not been struck off from the penalty notice - HELD THAT:- Absence of non-striking of the inappropriate words in the notice issued u/s 274 r.w.s. 271(1)(c) - A perusal of the penalty notice issued under section 274 read with 271 which has already been reproduced in the preceding paragraphs shows that the inappropriate words have not been struck off and it is not clear as to under which limb of provisions of section 271(1)(c) the AO has initiated penalty proceedings, i.e., for concealment or furnishing of inaccurate particulars of income. Similarly, the subsequent notice issued by the AO on 2nd June 2017 does not show anything and the AO simply asked the assessee to show cause as to why penalty u/s 271(1)(c) should not be imposed in your case. We find merit in the argument of the ld. counsel that the AO is not sure as to under which limb he has initiated penalty proceedings u/s 271(1)(c) of the Act, i.e., for concealment of income or for furnishing inaccurate particulars of income. We find identical issue had come up before in the case of PCIT vs M/s Sahara India Life Insurance Company Limited. [2019 (8) TMI 409 - DELHI HIGH COURT] - We hold that the penalty proceedings initiated by the AO is not in accordance with law and, therefore, the same has to be quashed. - Decided in favour of assessee.
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