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2021 (2) TMI 100 - AT - Income TaxLevy of penalty under section 271(1)(c) - Defective notice - Non specification of charge - additions on account of short term and long term capital gains - HELD THAT:- AO making the additions on account of short term / long term capital gains initiated the penalty proceedings under section 271(1)(c) for furnishing inaccurate particulars of income and concealing the facts. A.O, however, levied the penalty under section 271(1)(c) for concealing the particulars of income. A.O. in the show cause notice issued for levy of penalty has mentioned “Have concealed the particulars of your income or furnished inaccurate particulars of such income in terms of Explanation 1, 2, 3, 4 and 5.” It would, therefore, show that notice issued before levy of the penalty is bad in Law and it did not specify under which limb of Section 271(1)(c) of the Act, penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income. The Hon’ble Delhi High Court in its recent decision in the case of Pr. CIT vs. M/s. Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT] observed that the notice issued by the AO would be bad in law if it did not specify which limb of Section 271(1) (c) the penalty proceedings had been initiated under i.e. whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. Case followed M/S MANJUNATHA COTTON AND GINNING FACTORY & OTHS., M/S. V.S. LAD & SONS, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] - Decided in favour of assessee.
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