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2020 (5) TMI 107 - AT - Income TaxPenalty levied u/s 271(1)(c) - non-satisfaction of the AO while initiated the penalty proceedings u/s 271(1)(c) of the Act and also not specifying the charge in the notice issued u/s 274 r.w.s. 271 - HELD THAT:- Penalty proceedings in the case has been initiated with the remark “ penalty proceedings u/s 271(1)(c) of I.T.Act read with explanation 5A for concealment of particulars of income are being initiated separately.” However, from the copy of the notice issued u/s 274 r.w.s. 271 we find that the AO has failed to strike off irrelevant portion of the notice not applicable. We find that the said issue stands covered in favour of the assessee by the decision in Pr.CIT vs Sahara India Life Insurance Company Ltd. [2019 (8) TMI 409 - DELHI HIGH COURT]. Applying the ratio laid down by the Hon’ble Delhi High Court to the present case, we hold that where the AO has failed to strike off the irrelevant portion not applicable to the assessee, there is no merit in the penalty order passed u/s 271(1)(c) of the Act. The same is held to be bad and invalid in law. Penalty levied u/s 271AAA - In the case of other members of the Dawat group relying on the decision in the case of Shri Ashwani Kumar Arora vs ACIT [2017 (11) TMI 456 - ITAT DELHI], similar penalty has been deleted u/s 271AAA of the Act. In the case of Ashok Kumar Arora vs ACIT [2017 (11) TMI 513 - ITAT DELHI] and in the case of Vijay Kumar Arora vs ACIT [2018 (7) TMI 2109 - ITAT DELHI] wherein similar penalty has also been deleted u/s 271AAA of the Act. Following the same parity of reasoning, we delete the penalty levied u/s 271AAA - Decided in favour of assessee.
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