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2019 (2) TMI 1793 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - non specification of charge - HELD THAT:- AO has initiated the penalty for furnishing of inaccurate particulars of income with a view to concealment of income. The notice u/s 271(1)(c) was issued on 28.12.2016 in a standard format without mentioning the one of the two limbs or one of the two charges on which the penalty was proposed to be levied. Finally the penalty was imposed by AO invoking explanation 4 to section 271(1)(c) of the Act which is applicable in the case of concealment of income. It is clear from the above that AO has not passed the order after due application of mind and thus , assessee was deprived of the opportunity to respond to the show cause notice in a proper manner as the assessee was not aware of the specific charge on which the penalty was proposed to be levied. We have carefully perused the decisions relied upon by the counsel in the case of Shivkumar Devidutt Saraf, HUF vs. ITO [2018 (4) TMI 1786 - ITAT MUMBAI] and M/s. Quikr India Pvt. Ltd. vs. DCIT [2019 (1) TMI 1573 - ITAT MUMBAI] wherein under similar set of facts the co-ordinate bench of the Tribunal has held that no penalty can be imposed in such cases where the AO has passed the order in a mechanical manner. - Decided in favour of assessee.
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