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2020 (2) TMI 512 - AT - Income TaxLevy of penalty u/s 271(1)(c) - unexplained investments in construction of building, on receipt of valuation report from the DVO - Non striking out the irrelevant portion of the show cause notice u/s 274 - HELD THAT:- As seen from the notice, the A.O. has not struck out the irrelevant portion in the above notice. It is not clear whether he has levied the penalty for concealment of particulars of income or furnishing of inaccurate particulars of income . By reading of the penalty order also, it is not clear that whether he has levied the penalty for concealment of income or furnishing inaccurate particulars of income. Hence, the ratio laid down by the ITAT Cochin Bench in the case of M/s.R.R. Holidays Homes (P) Ltd. [2019 (12) TMI 401 - ITAT COCHIN] clearly applies Inclined to confirm the deletion of penalty by the CIT(A) in all the assessment years. Further, I also make it clear that the CBDT Circular No.3/2018 clearly applies to the present case of the assessee. There is no merit in the argument of the learned DR that the assessee is not covered by the CBDT Circular in view of para 10(d) of the above Circular. In my opinion, in the present case, the penalty was levied by the Assessing Officer on account of unexplained investments in construction of building, on receipt of valuation report from the DVO and further the addition is not related to any items mentioned in para 10(d). Being so, the department is precluded from filing the appeal in view of the monetary limit of filing the appeal before the Tribunal is ₹ 50 lakh, as prescribed by the CBDT. There is no useful purpose would be served in remitting the appeals to the files of the CIT(A). In the totality of the facts and circumstances of the case, we are inclined to confirm the order of the CIT(A) in deleting the penalty for all the assessment years. - Decided against revenue
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