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2021 (6) TMI 805 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Defective notice issued u/s 274 - computation of short-term capital gain - HELD THAT:- We find, the assessee, in the instant case, during the course of assessment proceedings had surrendered an income for the computation of short-term capital gain which amount was received by him on 13th December, 2011 by cheque and which relates to A.Y. 2012-13. The assessee had paid tax on the above amount. As further to be noted that the assessee had surrendered the above income before it was detected by the Department although only statutory notices had been issued. The Hon’ble Supreme Court in the case of PricewaterhouseCoopers, [2012 (9) TMI 775 - SUPREME COURT] while deleting the penalty upheld that the imposition of penalty on the assessee is not justified. We are satisfied that the assessee had committed an inadvertent and bona fide error and had not intended to or attempted to either conceal its income or furnish inaccurate particulars. We find, the assessee in the instant case had received an amoun on 13th December, 2011 which relates to A.Y. 2012-13 and, therefore, we find merit in the argument of the ld. counsel for the assessee that non-inclusion of the same while computing the income for A.Y. 2014-15 is only an inadvertent and bonafide error which the assessee came to know later on and had voluntarily offered the income and paid tax. A perusal of the notice issued u/s 274 r.w.s. 271 shows that the inappropriate words in the said notice have not been struck off. The coordinate Benches of the Tribunal following the decisions cited by the ld. Counsel for the assessee (supra) are consistently taking the view that where the inappropriate words in the penalty notice has not been struck off and notice does not specify as to under which limb of the provisions the penalty u/s 271(1)(c) has been initiated, then, levy of penalty u/s 271(1)(c) of the Act is not sustainable and has to be deleted - Appeal filed by the assessee is allowed.
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