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2022 (1) TMI 80 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - whether the notice was issued for incorrect particulars of income or for both, the proceeding cannot be initiated? - HELD THAT:- Notice imposing the penalty was vague, imprecise and incapable of clear understanding, therefore, the proceeding initiated on such notice is liable to be quashed. In view of the above, we are of the considered opinion that the penalty initiated against the assessee are also liable to be quashed. We may further mention that the assessee being loss making company, is not going to gain anything by wrongly declaring the loss on sale of asset as revenue loss instead of capital loss as in our view it is tax neutral. Therefore, no malafide intention to conceal the income or particulars of income can be attributed to the assessee. For the above said purpose, we may further relied upon the decision of the Hon'ble Supreme Court in the matter of Price Water Cooper Pvt. Ltd. [2012 (9) TMI 775 - SUPREME COURT] for the said purposes. Respectfully following the decision of the Hon'ble Supreme Court and on merit also we are of the opinion that the penalty imposed on the assessee is also liable to be deleted. In the result, the penalty imposed against the assessee is deleted on account of vague and improper notice as well as on merit. - Decided in favour of assessee.
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