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2023 (9) TMI 832 - AT - Income TaxLevying penalty u/s.271(1)(c) - defective notice u/s 274 - sale of shares as voluntarily offered for taxation by the assessee during the course of assessment proceedings - non striking of irrelevant portion on notice - HELD THAT:- As recording of satisfaction by AO in relation to any concealment of income or furnishing of inaccurate particulars by the assessee in notice issued u/s 271(1)(c) is the sine qua non for initiation of such proceedings. Further, we find that the ITAT, Pune in Ashok Sahahakari Sakhar Karkhana Ltd. [2017 (11) TMI 1048 - ITAT PUNE] had held that where in a notice issued u/s 274 of the Act the AO had used conjunction “or” to mention both limbs, i.e, concealment of income or furnishing inaccurate particulars of income and charge for levy of penalty was not explicitly clear from notice, then, the same was to be held as bad in law and penalty was liable to be set-aside. As the A.O had clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regards the defaults for which it was being proceeded against, therefore, the penalty under Sec. 271(1)(c) imposed by him being in clear violation of the mandate of Sec. 274(1) of the Act cannot be sustained - Decided in favour of assessee.
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