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2021 (3) TMI 949 - AT - Income TaxPenalty levied u/s 271(1)(c) - Defective notice - non specification of charge - loss on account of forfeiture of advance for land disallowed on the ground that the loss was in the nature of capital loss and not an item of revenue expenditure - HELD THAT:- The notice has not given the specific limb under which penalty has been imposed. Thus, the decision of the Hon'ble Supreme Court in case of SSA’s Emerald [2016 (8) TMI 1145 - SC ORDER] is applicable in assessee’s case. Further, on merit also the contention of the assessee that the claims of the assessee were genuine and there are two opinions about the allowability of those claims found some force. The decision of the Hon'ble Supreme Court in Price Waterhouse Coopers Pvt. Ltd[2012 (9) TMI 775 - SUPREME COURT] is as the bonafide mistake is always allowable mistake and the absence of due care, in a case such as the present, does not mean that the assessee is guilty of either furnishing inaccurate particulars or attempting to conceal its income. Thus, invoking penalty u/s 271(1)(c) of the Act is not just and proper. Therefore, the assessee succeeds in his legal plea as well as on merit and penalty does not sustain. Appeal of the assessee is allowed.
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