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2021 (9) TMI 237 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - non striking inappropriate words - assessee made wrong claim in respect of taxable income thereby furnished inaccurate particulars of income and concealed its income - HELD THAT:- Inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s 271(1)(c) is not sustainable and has to be deleted. Although the Ld. DR submitted that mere non-striking off of the inappropriate words will not invalidate the penalty proceedings, however, the decision of the Hon’ble Karnataka High Court in the case of SSA’S Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] where the SLP filed by the Revenue has been dismissed by Hn’ble Apex Court [2016 (8) TMI 1145 - SC ORDER] is directly on the issue contested herein by the Assessee. Further, when the notice is not mentioning the concealment or the furnishing of inaccurate particulars, the ratio laid down by the Hon’ble Delhi High Court in case of M/s. Sahara India Life Insurance Company Ltd [2019 (8) TMI 409 - DELHI HIGH COURT] will be applicable in the present case In the present case the assessee has not furnished inaccurate particulars of income as the revised return was filed during the course of assessment proceedings before being pointed out by the AO in the notice u/s 142(1) & 143(2). The assessee has claimed the statutory deductions/exemptions only. Thus, the present case is squarely covered by the Hon’ble Apex Court decision [2010 (3) TMI 80 - SUPREME COURT] and Section 271(1)(c) will not be attracted in the present case. Thus, the Assessing Officer was not right in imposing the penalty and the CIT(A) also ignored the crucial facts of the present case. Hence, appeal filed by the assessee is allowed.
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