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2023 (4) TMI 677 - AT - Income TaxPenalty u/s 271(1)(c) - disallowances u/s 14A read with Rule 8D - HELD THAT:- As copy of penalty notice makes it apparent that the AO had failed to distinguish and inform the Assessee as to it the notice was issued for concealment of income or furnishing inaccurate particulars and a proforma in a mechanical manner the notice was issued. The judgment relied by Assessee in the case of Ganga Iron & Steel Trading Co.[2021 (12) TMI 1094 - BOMBAY HIGH COURT] reiterates the settled provision of law that if notice is vague then the penalty proceedings initiated on that basis were vitiate and for that purpose Hon’ble High court relied its full bench judgment in Mohd. Farhan A Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] Thus the penalty proceedings are void ab initio. Accordingly, grounds raised by the Assessee are sustained. Decided in favour of assessee.
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