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2020 (12) TMI 493 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - in the show cause notice issued u/s 274 read with section 271(1)(c) has not struck off any of the twin charges - HELD THAT:- AR has relied upon the decision of the Hon’ble Delhi High Court in Pr. CIT Vs. Sahara India Life insurance Company Ltd [2019 (8) TMI 409 - DELHI HIGH COURT] relying upon the decision of CIT Vs. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] and CIT Vs. SSA’s Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] that the notice issued by the ld AO for levy of the penalty would be bad in law if it did not specify which limb of section 271(1)(c) the penalty proceedings have been initiated. In the present case the notice issued by the ld AO section 271(1)(c) is silent. Even otherwise in the assessment order passed the ld AO was not clear whether the penalty was leviable for concealment of income or for furnishing inaccurate particulars of income. Thus, it was not discernable clearly in which limb the assessee was to be penalized. As in Virgo Marketing Pvt. Ltd [2008 (1) TMI 885 - DELHI HIGH COURT] has held that if one is unable to discern from the reading of the assessment order why the ld AO choose to initiate penalty proceedings against the assessee and under which limb the penalty proceedings cannot be upheld. In view of the above facts and the binding judicial precedents of the Hon’ble High Court we set aside the orders of the lower authorities and direct the ld AO to delete the penalty u/s 271(1)(c) - Decided in favour of assessee.
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