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2021 (2) TMI 73 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Defective notice - assessment of income from house property - no ITR was filed by the assessee for any of the assessment years - assessee as argued for defective notice issued - assessee had received rental income as his share of income from house property and since, the income exceeded maximum amount which is chargeable to tax, assessee was liable to file return of income u/s 139 - HELD THAT:- Notices issued by the AO for levy of penalty u/s 271(1)(c) of the Act to be bad in law as it did not specify in which limb of section 271(1)(c) the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or furnishing inaccurate particulars of income. The show-cause notices are, therefore, bad in law and illegal and, as such, the entire penalty proceedings are vitiated and no penalty is leviable against the assessee in any of the years. On this scope itself, similar views is taken by the Hon’ble Karnataka High Court in the case of CIT Vs. M/s SSAs Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] and this decision is confirmed by the Hon’ble Supreme Court [2016 (8) TMI 1145 - SC ORDER]. Hon’ble Delhi High Court in the case of Pr. CIT Vs. M/s Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT], following the above decisions of Karnataka High Court did not find any error in the order of the Tribunal in cancelling the penalty. - Decided in favour of assessee.
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