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2017 (8) TMI 75 - AT - Income TaxPenalty under Section 271(1)(c) - concealment of particulars of income or for furnishing inaccurate particulars of such income - Held that:- The entire penalty proceedings initiated in the instant case are vitiated as the notice issued is not in accordance with law, inasmuch as, the said notice nowhere specified whether the proceedings were being initiated for the reason of concealment of particulars of income or on account of furnishing of inaccurate particulars thereof. Even the satisfaction note made in the assessment order or the penalty order also does not indicate whether it was a case of concealment of income or furnishing of inaccurate particulars of income. Therefore, laying our hands on the decisions of Gujrat High Court in the case of Manu Engineering, [1978 (9) TMI 18 - GUJARAT High Court] and Virgo Marketing [2008 (1) TMI 885 - DELHI HIGH COURT] where it has been held that levy of penalty has to be clear as to the limb 8 for which it is levied and the position being unclear penalty is not sustainable, we are of the considered opinion that the penalty imposed in the instance case is void ab initio. Similar view has been taken by Hon’ble Karnataka High Court in Manjunatha’s case (2013 (7) TMI 620 - KARNATAKA HIGH COURT). We, therefore, cancel the penalty imposed u/s. 271(1)(c) of the Act on this legal aspect itself and hence, we need not to enter into other grounds or reasons for penalty and their explanations extended by the assessee on merits. Appeal of the assessee is allowed.
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