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2020 (2) TMI 938 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - notice issued u/s 274, the Assessing Officer has not struck down the irrelevant portion in the said notice - Curable defect u/s 292BB - HELD THAT:- Show cause notice u/s. 274 of the Act is defective as it does not spell out the grounds on which the penalty is sought to be imposed. Further, the Hon’ble Karnataka High Court in the case of CIT v. SSA’s Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] it was held that imposing penalty u/s 271(1)(c) of the Act is bad in law and invalid for the reason that the show cause notice issued u/s 274 of the I.T.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. Also confirmed by SC [2016 (8) TMI 1145 - SC ORDER] Provisions of sec.292BB would not come to the rescue of the revenue, when the notice was not in substance and effect in conformity with or according to the intent and purpose of the Act. In our view, the notice issued by the Assessing Officer was not in substance, and effect in conformity with or according to the intent and purpose of the Act, since the Assessing Officer did not specify the charge for which penalty proceedings were initiated and further there was non-application of mind on the part of the Assessing Officer. For the reasons given above, we hold that levy of penalty in the present case cannot be sustained.
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