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2021 (9) TMI 1225 - AT - Income TaxPenalty u/s 271(1 )(c) - disallowance of depreciation - defective notice u/s 274 - bonafide mistake on part of the assessee - Whether the appellant company has not concealed the income or furnished inaccurate particulars of Income? - HELD THAT:- Assessing Officer was not sure under which limb of provisions of Section 271 of the Income Tax Act, 1961, the assessee is liable for penalty. Besides that the Assessment Order also did not specify the charge as to whether there is concealment of income or furnishing of inaccurate particulars of income in assessee’s case. Besides this, the present case is relating to wrong claim of depreciation which was a bonafide mistake on part of the assessee for which it cannot be said that it is concealment of income or furnishing of inaccurate particular of income. This issue is squarely covered by the decision of the Hon’ble Supreme Court in case of M/s SSA’ Emerald Meadow.[2016 (8) TMI 1145 - SC ORDER]. As the inappropriate words in the penalty notice has not been struck off and the notice does not specify as to under which limb of the provisions, the penalty u/s 271(1)(c) has been initiated, therefore, we are of the considered opinion that the penalty levied u/s 271(1)(c) is not sustainable and has to be deleted. - Decided in favour of assessee.
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