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2024 (2) TMI 270 - AT - Income TaxPenalty u/s 271(1)(c) - addition sustained purely on an adhoc estimate basis - allegation of defective notice u/s 274 - non specification of clear charge/ non striking off inapplicable part - HELD THAT:- The full Bench in the case Mohd. Farhan A Shaikh Vs. DCIT 2021 (3) TMI 608 - BOMBAY HIGH COURT (LB) has held that a mere defect in the notice - not striking off the irrelevant matter, would vitiate the penalty proceedings. A perusal of the penalty notice issued u/s 274 read with 271 of the Act would show that the notices are in the nature of an omnibus show cause notice issued without deleting or striking off the inapplicable part. Same is the case with the penalty order passed under Section 271(1)(c) of the Act, as it also does not state under which limb of Section 271(1)(c) of the Act penalty has been levied. Thus penalty deleted - Decided in favour of assessee.
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