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2023 (4) TMI 240 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non striking off irrelevant part in notice - HELD THAT:- As is evident from notice it is an omnibus notice without identifying the charge by striking off of the limb which is not applicable. In such circumstances, the penalty levied cannot be sustained. See case of Md. Farhan A. Shaikh . [2021 (3) TMI 608 - BOMBAY HIGH COURT] - Similar proposition was laid down in SAHARA INDIA LIFE INSURANCE COMPANY, LTD. [2019 (8) TMI 409 - DELHI HIGH COURT] - Thus, since the penalty notice is omnibus and the charge has not been specified, the penalty is not sustainable. Disallowance of expenditure in connection with QIP and disallowance of claim of deduction u/s 80-IB on the ground of allocation of interest expenses - It cannot be said that there is concealment of income or furnishing of inaccurate particulars of income on the issue on which the penalty has been levied. All due disclosures are there. Primary dispute is with respect of nature of expenses i.e. revenue vs capital. These particulars have been completely disclosed in Income Tax Return. Hence if the claim is not accepted merely on the ground of the same being classified capital by Revenue authorities, in such as a situation the case of Reliance Petro products [2010 (3) TMI 80 - SUPREME COURT] comes to the rescue of the assessee. In this case it was held that mere disallowance of a claim which is not ex-facie bogus cannot lead to levy of penalty. In these circumstances, in our considered opinion, the assessee deserves to succeed.
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