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2020 (9) TMI 729 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice - non application of mind by AO - Non specification whether the penalty is initiated for concealment of income or furnishing inaccurate particulars of income since both the charges carry different connotations - assessee claimed deduction u/s 10AA @50% - HELD THAT:- AO has initiated penalty on both the counts of concealment of income as well as of furnishing of inaccurate particulars of income. In the show cause notice u/s 274 dated 31.03.2014 also none of the twin charges were stuck off. In the penalty order also penalty is levied for both the deafults. We find that issue is squarely covered in favour of the assessee by the decision of Sahara India Insurance Company Ltd [2019 (8) TMI 409 - DELHI HIGH COURT] as held that penalty is not sustainable if none of the twin charges in notice u/s 274 of the Act are cancelled/ stuck off. On this issue, it is clear that the penalty levied by the ld AO is not sustainable in law. - Decided in favour of assessee.
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