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2021 (3) TMI 1381 - ITAT DELHIPenalty u/s 271(1)(c) - allegation of defective notice u/s 274 and non specification of clear charge - non striking of inappropriate words - interest income received in respect of enhanced compensation - as per AO the assessee concealed the income - HELD THAT:- First of all, in the notice issued u/s 274 r.w.s 271(1)(c) there was no specific charges as relates to concealment of income or furnishing of inaccurate particulars of income. From the notice produced by the Ld. AR during the hearing, it can be seen that the AO was not sure under which limb of provisions of Section 271 the assessee is liable for penalty. In the present case the enhanced compensation and interest received thereon was taken into account but the Assessing Officer observed that the interest received on compensation or interest received on enhanced compensation is taxable under the income from other sources and will not come under the purview of the exemption under Section 10(37) - AO initiated penalty under Section 271(1)(c) as relating to concealment of income due to the fact that the assessee had not filed the return of income and never declared the compensation and the interest received thereon. Merely not filing the return of income cannot amount to concealment of income. Therefore we are taking up the contention of the assessee that there is no particular limb mentioned in the notice issued under Section 271(1)(c) r.w.s. 274 - See M/S SSA'S EMERALD MEADOWS [2016 (8) TMI 1145 - SC ORDER] As inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s 271(1)(c) is not sustainable and has to be deleted. Appeal of assessee allowed.
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