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2021 (3) TMI 479 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Defective notice - non specification of charge -HELD THAT:- In this case, AO passed the assessment order u/s 143(3) dated 21.03.2006 making certain additions to the returned income. The AO at the end of the order has mentioned “I am satisfied that the assessee has concealed his income and furnished inaccurate particulars of income within the meaning of section 271(1)(c) of the Act. Accordingly, penalty proceedings u/s 274 read with section 271(1)(c) of the Act are initiated”. The AO on the same day issued penalty notice dated 21.03.2006 in which the AO has mentioned the same facts (supra). It would, therefore, show that AO has mentioned both the limbs of section 271(1)(c) of the Act in the assessment order as well as in the notice issued for levy of the penalty. See M/S SSA’S EMERALD MEADOWS [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] wherein held notice issued by the AO u/s 274 read with section 271(1)(c) of the Act to be bad in law as it did not specify which limb of section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or furnishing of inaccurate particulars of income. We set aside the order of the authorities below and cancel the penalty. - Decided in favour of assessee.
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