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2020 (10) TMI 82 - AT - Income TaxLevy of penalty u/s 271(1)(c) - defective notice - Non specification of charge - whether the charge is that the assessee has furnished inaccurate particulars of income or it was for concealing particulars of such income in as much as a bare perusal of the said show cause notice clearly reveal that the inappropriate words/unwanted charge has not been struck off? - HELD THAT:- In the instance case, we find that the penalty proceedings have been initiated during the course of assessment proceedings for concealing the particulars of income regarding long term capital gains on sale of immovable property and therefore, as far as recording of satisfaction during the course of assessment proceedings, there is no ambiguity. In the instant case, we find that in the show-cause notice, AO has not initiated the penalty on a specific charge and has talked about either concealment of income or furnishing of inaccurate particulars of income, however, while levying the penalty, AO has talked about both concealment of income and furnishing of inaccurate particulars of income. AO has not specified in the penalty order as to how it is a case of applicability of both the charges in the facts and circumstances of the present case. We therefore find that it is a case of lack of application of mind by the AO both at the time of initiation and final levy of penalty and the AO has failed to give a decisive finding even at the time of passing the penalty order. It is a case where the assessee has not disclosed long term capital gains on sale of an immovable property, therefore, it is a case of concealment of income whereas the AO has held the same to be a case of concealment of income as well as furnishing of inaccurate particulars of income - Decided in favour of assessee.
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