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2022 (10) TMI 30 - ITAT DELHILevy of penalty u/s. 271(1)(c) - Valid notice u/s 274 - non specification of charge - Non independent application of mind by AO - HELD THAT:- In the instant case, the AO initiated the penalty under section 271(1)(c) of the Act for concealment of income and furnishing inaccurate particulars of Incomeand thereafter issued the notice u/s 274 r.w.s. 271(1)(C) of Act for concealment of the particulars of income or filling of inaccurate particulars of income but without specifying any particular limb and finally vide penalty order dated 23.09.2015 imposed the penalty for concealment of the particulars of income. In the case of Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] observed where the Assessing Officer proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court also held that the standard proforma of notice under section 274 of the Act without striking of the irrelevant clause would lead to an inference of non-application of mind by the Assessing Officer and levy of penalty would suffers from non-application of mind. The penalty provisions of section 271(1)(c) of the Act are attracted, where the Assessee has concealed the particulars of income or furnished inaccurate particulars of such income. It is also a well-accepted proposition that the aforesaid two limbs of section 271(1)(c) of the Act carry different meanings. Therefore, it is imperative for the Assessing Officer to specify the relevant limb so as to make the Assessee aware, as to what is the charge made against him so that he can respond accordingly. - Decided in favour of assessee.
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