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2021 (6) TMI 934 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - invalid notice u/s 274 - HELD THAT:- Penalty cannot be imposed merely on the ground that additions made in the income of the assessee have been confirmed. Rather, to proceed with the imposition of penalty u/s 271(1)(c), the AO has to prove that there was concealment of particulars of income or that the assessee has furnished inaccurate particulars of such income. A bare perusal of the notice issued to the assessee u/s 274 read with section 271(1)(c) of the Act goes to prove that assessee has not been called upon to explain if she has concealed the particulars of income or furnished inaccurate particulars of such income. See M/S MANJUNATHA COTTON AND GINNING FACTORY & OTHS., M/S. V.S. LAD & SONS, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] We are of the considered view that since the assessee has not been specifically made aware of the charges leveled against her as to whether there is a concealment of income or furnishing of inaccurate particulars of income on her part, the penalty u/s 271(1)(c) of the Act is not sustainable.See Sahara’s case [2019 (8) TMI 409 - DELHI HIGH COURT] - Accordingly, we set aside the order of the Ld.First Appellate Authority and direct the AO delete the penalty. Appeal filed by the assessee is allowed.
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