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2023 (7) TMI 118 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Defective notice u/s 274 - non striking of irrelevant portion - assessee contended that the notice issued before imposing penalty was not accordance with law and on this ground the order imposing penalty should be quashed - HELD THAT:- The show cause notice u/s. 274 r.w.s 271 of the Act is defective as it does not spell out the grounds on which the penalty is sought to be imposed. The Hon’ble Karnataka High Court in the case of CIT vs. SSA’s Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] following its own decision in the case of CIT vs Manjunatha Cotton and Ginning factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] took a view that imposing of penalty u/s 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income. It is also noticed that as against the decision of the Hon’ble Karnataka High Court the revenue preferred an appeal in SLP [2016 (8) TMI 1145 - SC ORDER] preferred by the department. Appeal by the assessee is allowed.
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