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2020 (12) TMI 44 - ITAT KOLKATAPenalty levied u/s 271(1)(c) - Defective notice - AO has not stricken out charge/fault which are not applicable in the case of assessee i.e. whether the assessee has concealed the particulars of its income or it has furnished inaccurate particulars of such income - HELD THAT:- AO has not stricken out the irrelevant portion of the fault/charge which would have spelt out the specific fault/charge against the assessee as per section 271(1) (c) of the Act. Since the proposed notice itself is defective, all subsequent proceedings are bad in law and the penalty imposed by the AO u/s. 271(1)(c) of the Act and confirmed by the Ld. CIT(A) should be cancelled. As relying on M/S SSA’S EMERALD MEADOWS [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] and M/S MANJUNATHA COTTON AND GINNING FACTORY & OTHS., M/S. V.S. LAD & SONS, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] took a view that imposing of penalty u/s 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income. Imposition of penalty and subsequently confirmed by the Ld. CIT(A) in the present cases cannot be sustained and the same is hereby deleted. Therefore, the appeals of assessee are allowed.
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