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2020 (10) TMI 1152 - HC - Income TaxPenalty proceedings u/s 271(1) (c) - certain observations made by the AO during the quantum assessment and based upon the statement given by the assessee to the Survey party can solely be a basis for levy of penalty - Defective notice u/s 274 - HELD THAT:- AO did not specifically state under which limb of the penalty provision, the assessee would fall and therefore, the assessee was put to prejudice as regards the allegation which he has to meet. Apart from that, the learned counsel for the appellant would submit that the re-assessment proceedings in the name of the appellant/assessee is erroneous as if at all there was any material, it is only the firm which is to be assessed and not the appellant/assessee. - It would be too late for the assessee to raise such a contention as the re-assessment proceedings stood concluded as of the year 2008. Nevertheless, if it had been raised at the appropriate time, probably it might have been taken note of by the AO. This is not a case, where the assessee had no explanation to offer and the explanation offered was not tested for its correctness in the proper manner to pave way for levy of penalty. Substantial Questions of Law are answered in favour of the appellant/assessee
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