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2021 (7) TMI 1022 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u/s 274 - non specification of charge - whether penalty proceedings had been initiated i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars ? - HELD THAT:- In PCIT vs. Sahara India Life Insurance Company Limited case [2019 (8) TMI 409 - DELHI HIGH COURT] upheld the view taken that the notice issued by the learned Assessing Officer would be bad in law if it did not specify under which limb of section 271(1)(c) of the Act the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or for furnishing of inaccurate particulars thereof. AO to assume jurisdiction u/s 271(1)(c), proper notice is necessary and the defect in notice u/s 274 of the Act vitiates the assumption of jurisdiction by the learned Assessing Officer to levy any penalty. In this case, facts stated supra, clearly establish that the notice issued under section 274 read with 271 of the Act is defective and, therefore, we find it difficult to hold that the learned AO rightly assumed jurisdiction to pass the order levying the penalty. As a consequence of our findings above, we direct the Assessing Officer to delete the penalty in question. Appeal of assessee is allowed.
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