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2023 (1) TMI 372 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice u/s 274 - Non strike of irrelevant part - notionally computed commission paid to eam the long term capital gains without establishing any fact that the assessee had actually paid any commission - HELD THAT:- From the perusal of the notice issued under section 274 r/w section 271(1)(c) of the Act, we find that the Ao did not strike–off any of the twin charges i.e., concealment of particulars of income or furnishing of inaccurate particulars of income. The case of the assessee is squarely covered by the decision of Mohd. Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] wherein the Larger Bench of the Hon’ble Court has held that the defect in the notice by not striking off the irrelevant matter would vitiate the penalty proceedings. Accordingly, we reverse the findings of the lower authorities and quash the penalty order passed under section 271(1)(c) - Accordingly, the AO is directed to delete the penalty levied under section 271(1)(c) - Appeal by the assessee is allowed.
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