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2022 (7) TMI 851 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non specification of charge - as per assessee notice was issued for both the limbs without strike off irrelevant limb and specifying the charge for which the notice was issued - assessee submits that since the notice was issued without specifying the charge for which notice was issued the penalty proceedings initiated were bad in law - HELD THAT:- As could be seen from the above in the case of Mr. Mohd. Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] while dealing with the issue of non-strike off of the irrelevant part in the notice issued u/s.271(l)(c) of the Act, held that assessee must be informed of the grounds of the penalty proceedings only through statutory notice and an omnibus notice suffers from the vice of vagueness. In SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [2019 (8) TMI 409 - DELHI HIGH COURT] held that the notice issued by the Assessing Officer was bad in law if it did not specify under which limb of section 271(1)(c ) of the Act the penalty proceedings had been initiated i.e. whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. Ratio of the full bench decision of the Hon'ble Bombay High Court (Goa) squarely applies to the facts of the assessee's case as the notice u/s. 274 r.w.s. 271(l)(c) of the Act was issued without striking off the irrelevant portion of the limb and failed to intimate the assessee the relevant limb and charge for which the notices were issued. Thus, respectfully following the said decision we hold that the penalty order passed u/s. 271(1)(c) by the Assessing Officer is bad in law and accordingly the penalty order passed u/s. 271(l)(c) of the Act for Assessment Year 2008-09 is quashed - Decided in favour of assessee.
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