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2019 (7) TMI 1150 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - HELD THAT:- Evidently the show cause notice u/s. 271(1)(c) of the Act dated 31.12.2008 is defective as it does not spell out the grounds on which the penalty is sought to be imposed. The Hon’ble Karnataka High Court in the case of CIT vs. SSA's Emerald Meadows [2013 (7) TMI 620 - KARNATAKA HIGH COURT] wherein following its own decision in the case of CIT vs Manjunatha Cotton and Ginning factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] took a view that imposing of penalty u/s 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income. The Id. Counsel further brought to our notice that as against the decision of the Hon’ble Karnataka High Court the revenue preferred an appeal in SLP [2016 (8) TMI 1145 - SC ORDER] dismissed the SLP preferred by the department. As already observed that the showcause notices issued in the case on hand under section 274 read with Section 271(1)(c) dated not specify the charge against the assessee as to whether it is for “concealing particulars of income” or “furnishing inaccurate particulars of income”. The show cause notice under section 271(1)(c) of the Act does not strike out the inappropriate words. In these circumstances, we are of the view that imposition of penalty cannot be sustained. - Decided in favour of assessee.
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