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2021 (2) TMI 866 - AT - Income TaxPenalty u/s. 271(1)(c) - concealment of income - Defective notice - non specification of charge - income which was disclosed by assessee only on the basis of seized material and shown in return filed in response to notice u/s. 153A - HELD THAT:- On perusal of the above show cause notice it is evident that the Ld. A.O. has mentioned both the charges as provided in Section 271(1)(c) of the Act. Ld. A.O. has not striked off one of the charge not applicable on the assessee. In the assessment order framed on 30.11.2017 Ld. A.O. initiated the penalty proceedings against the assessee for concealment of income. However in the penalty notice both the charges are mentioned. Under these given facts where specific charges have not levelled against the assessee in the notice issued u/s. 274 of the Act, we in view of settled judicial principles as well as following the judgment of Hon'ble Jurisdictional High Court in the case of PCIT V/s. Kulwant Bhatia 2018 (5) TMI 960 - MADHYA PRADESH HIGH COURT] are treating such type of notices as bad in law since they are not meeting the specific requirement of law. AO. was not justified in levying the penalty for the alleged concealment of income even when the income was duly disclosed in the original return of income, no incriminating material was found during search u/s. 132 of the Act relating to this transaction of sale of equity shares and assessee suo moto offered it to tax under other head of income. Thus the finding of Ld. CIT(A) deleting the penalty u/s. 271(1)(c) of the Act needs no interference - Decided in favour of assessee.
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