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2021 (1) TMI 206 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - AO did not specify the fault/charge on which he proposed to levy penalty against the assessee - Without striking out one of the limbs, the assessee is called upon by the AO to defend both the faults/charges - 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. According to us, since the proposed show-cause notice itself is a 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 decided in M/S SSA’S EMERALD MEADOWS [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] 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. - Decided in favour of assessee.
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