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2021 (4) TMI 256 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non specification of clear charge - HELD THAT:- It is an admitted fact that before levy of the penalty A.O. has issued show cause notice Dated 20.06.2014 in all the years in which A.O. has mentioned both the limbs of Section 271(1)(c) of the I.T. Act that assessee have concealed the particulars of your income or furnished inaccurate particulars of such income. Thus the A.O. has not mentioned as to for which limb of Section 271(1)(c) of the I.T. Act penalty shall have to be levied against the assessee. The Hon’ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] confirmed the Order of the Tribunal by dismissing the Departmental Appeal in which the Tribunal has allowed the appeal filed by the assessee holding that notice issued by the A.O. under section 274 read with Section 271(1)(c) of the I.T. Act to be bad in Law and it did not specify under which limb of Section 271(1)(c) of the I.T. Act penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing inaccurate particulars of income. The Judgment of the Hon’ble Karnataka High Court have been confirmed by the Hon’ble Supreme Court [2016 (8) TMI 1145 - SC ORDER] Also see M/S. SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [2019 (8) TMI 409 - DELHI HIGH COURT] - A.O. has issued invalid and defective notices under section 271(1)(c) of the I.T. Act read with Section 274 of the I.T. Act Dated 20.06.2014 before levy of the penalty. Therefore, entire penalty proceedings are vitiated and are liable to be quashed. - Decided in favour of assessee.
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