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2021 (7) TMI 16 - AT - Income TaxPenalty levied under section 271(1)(c) - Addition of additional ground - HELD THAT:- Additional ground raised are already available on record and no investigation of the fresh facts is required for adjudication of these grounds. Accordingly, in view of the settled principal in the case of National Thermal Power Co. Ltd. v. CIT [1996 (12) TMI 7 - SUPREME COURT] the additional grounds raised by the assessee are admitted. Initiating the penalty proceeding relevant charges either of concealment of income or furnishing of inaccurate particulars of income - The assessee was not clear under which limb of section 271C of the Act, the penalty was initiated. The Hon’ble Karnataka High Court in the case of Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] has held that while issuing the notice the Assessing Officer has to come to conclusion that whether it is a case of concealment of income or furnishing of inaccurate particulars of income and sending printed forms where all grounds mentioned in section 271 are mentioned, would not satisfy requirement of law. The Hon’ble Supreme Court in the case of SSA’S Emerald Meadows [2016 (8) TMI 1145 - SC ORDER], has also upheld the finding in the case of Manjunatha Cotton and Ginning Factory (supra) Respectfully, following the decision of the Hon’ble Karnataka High Court and Hon’ble Supreme Court, we are of the opinion that penalty levied is bad in law and accordingly we cancel the same. Additional ground of the appeal is allowed.
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