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2017 (1) TMI 1193 - ITAT KOLKATAPenalty order u/s. 271(1)(c) - non mention of reasons - defective notice - Held that:- Assessee has clearly explained before us that the assessee has admitted the undisclosed income suo moto during the course of search. In the case under consideration, the AO had made the addition based on the estimate and not based on the seized documents. When the addition is based on the estimate the penalty cannot be levied. In addition to this, the ld. AR for the assessee relied on the judgment of the jurisdictional ITAT in the case of Shri Suresh Karmakar Vs. DCIT [2017 (1) TMI 1163 - ITAT KOLKATA] where he has pointed out that the AO did not tick the relevant para of the notice of the penalty u/s. 274 of the Act, therefore, the assessee did not know for which reason he is being penalized. Hence, following the decision of M/s MANJUNATHA COTTON AND GINNING FACTORY & OTHS. [2013 (7) TMI 620 - KARNATAKA HIGH COURT] we are of the view that the penalty imposed by the AO and confirmed by the ld. CIT(A) needs to be deleted. Accordingly, we delete the penalty u/s. 271(1)(c) - Decided in favour of assessee
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