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2020 (11) TMI 734 - AT - Income TaxPenalty u/s 271(1)(c) - exemption u/s 11 and 12 disallowed - benefit of section 11(1A) is not available to assessee because of investment in shares of Tata sons Ltd as per section 11(1) and investment in shares of Tata Sons Ltd is not held as Corpus fund - AO held that the assessee is hit by the provisions of section 13(1)(d)(i) and 13(1)(d)(iii) - Assessee argued that the penalty notice nowhere speaks about specific limb to levy the penalty because the particular charge was not tick off in the notice - HELD THAT:- It is not in dispute that the penalty u/s 271(c) of the Act is leviable on account of the concealment of particular of income and on account of furnishing the inaccurate particulars of income. Both have different connotations. In this regard, the Hon’ble Supreme Court has appreciated the distinction between both the limb in the case Dilip N. Shroff [2007 (5) TMI 198 - SUPREME COURT]. As per the record, the assessment order speaks about levying the penalty on account of furnishing the inaccurate particulars of income but the notice nowhere specify any limb to levy the penalty. The notice is not justifiable in view of the law settled by the Bombay High Court in the case of CIT-11 Vs. Samson Perinchery. [2017 (1) TMI 1292 - BOMBAY HIGH COURT]. It is quite clear that the penalty is not leviable in accordance with law. Since the penalty is not sustainable on the issue of defective notice, therefore, we are not inclined to decide the matter of controversy on merits. Declining the claim of the assessee by the AO nowhere attracted the penalty being it is not a case of furnishing the inaccurate particulars of income and concealment of particulars of income, the assessee has fully disclosed each and every facts and thereafter claimed exemption u/s 11 & 12 of the Act. However, the same was declined. No penalty is leviable in the said circumstances and in this regard, we also find support of the decision in the case of CIT Vs. Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT]- Decided in favour of assessee.
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