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2020 (2) TMI 783 - AT - Income TaxPenalty u/s 271(1)(c) - defective notice - as alleged irrelevant default in the ‘Show cause’ notice was not struck off by the A.O - addition on account of ‘Unexplained investment’ in the hands of the assessee and addition of perquisite of rent free accommodation made in the hands of the assessee - HELD THAT:- Failure on the part of the A.O to clearly put the assessee to notice as regards the default for which penalty under Sec. 271(1)(c) was sought to be imposed on him by failing to strike off the irrelevant default in the ‘SCN’, dated 28.12.2010, had left the assessee guessing of the default for which he was being proceeded against for. We thus in the backdrop of our aforesaid observations are of a strong conviction that as the A.O had clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regards the default for which he was being proceeded against, therefore, the penalty under Sec. 271(1)(c) imposed is clear violation of the mandate of Sec. 274(1) of the Act cannot be sustained. - Decided in favour of assessee.
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