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2020 (10) TMI 793 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - Appellant was never communicated either of twin exact charge envisaged in section 271(1)(c) - undisclosed expenses - HELD THAT:- Failure on the part of the A.O to clearly put the assessee to notice as regards the default for which penalty under Sec. 271(1)(c) was sought to be imposed on it in the ‘SCN’, dated 31.03.2016, had left the assessee guessing of the default for which it was being proceeded against. As the two defaults viz. ‘concealment of income’ and ‘furnishing of inaccurate particulars of income’ as contemplated in Sec.271(1)(c) are separate and distinct defaults which operate in their exclusive and independent fields, we, therefore, are unable to subscribe to the view taken by the CIT(A) that the A.O had validly imposed penalty for “concealment of income and furnishing inaccurate particulars of income” in respect of the solitary addition of ₹ 14.50 lacs made in the hands of the assessee. We thus in the backdrop of our aforesaid observations not being able to persuade ourselves to subscribe to the imposition of penalty by the A.O. - Decided in favour of assessee.
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