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2019 (1) TMI 1003 - AT - Income TaxLevy of penalty u/s 271(1)(c) - non specify the limb of Sec. 271(1)(c) for which the penalty proceedings had been initiated - defective notice - non deletion of irrelevant default from notice - Held that:- Admittedly, on a perusal of the ‘SCN’, dated 31.12.2010, it stands revealed that the Assessing Officer had failed to strike off the irrelevant default while calling upon the assessee to explain as to why the penalty u/s 271 (1) (c) of the Act may not be imposed on her. As both of the two defaults envisaged in Sec. 271(1)(c) i.e ‘concealment of income’ and ‘furnishing of inaccurate particulars of income’ are separate and distinct defaults which operate in their independent and exclusive fields, therefore, it was obligatory on the part of the A.O to have clearly put the assessee to notice as regards the default for which she was called upon to explain as to why penalty under Sec. 271(1)(c) may not be imposed on her. As observed by us hereinabove, a perusal of the ‘Show cause’ notice issued in the present case by the A.O under Sec. 274 r.w. Sec. 271(1)(c), dated 31.12.2010 clearly reveals that there has been no application of mind on the part of the A.O while issuing the same. As penalty proceedings are in the nature of quasi criminal proceedings, therefore, the assessee as a matter of a statutory right is supposed to know the exact charge for which he is being called upon to explain that as to why the same may not be imposed. The non specifying of the charge in the ‘Show cause’ notice not only reflects the non application of mind by the A.O, but the same seriously defeats the very purpose of giving a reasonable opportunity of being heard to the assessee as envisaged under Sec. 274(1). Case of SA'S EMERALD MEADOWS [2016 (8) TMI 1145 - SUPREME COURT] to be followed - Decided in favour of assessee
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