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2022 (2) TMI 1090 - AT - Income TaxPenalty u/s 271(1)(c) - Non mentioning of specific default - defective notice u/s 274 - HELD THAT:- Failure on the part of the A.O to clearly put the assessee to notice as regards the default for which penalty u/s 271(1)(c) was sought to be imposed on it, i.e, neither by making a specific mention of the same at the time of initiating the penalty proceedings in the body of the assessment order, nor by striking off the irrelevant default in the ‘SCN’, dated 19.02.2014, had undoubtedly left the assessee guessing of the default for which it was being proceeded against. Accordingly, in the backdrop of our aforesaid observations, we are of a strong conviction that as the A.O had clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regards the default for which it was being proceeded against, therefore, the penalty under Sec. 271(1)(c) imposed by him in clear violation of the mandate of Sec. 274(1) of the Act cannot be sustained. We, thus, for the aforesaid reasons not being able to persuade ourselves to subscribe to the imposition of penalty by the A.O, therefore, set-aside the order of the CIT(A) who had upheld the same. Resultantly, the penalty imposed by the A.O under Sec.271(1)(c) is quashed in terms of our aforesaid observations. - Decided in favour of assessee.
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