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2022 (4) TMI 18 - ITAT AHMEDABADLevy of penalty u/s 271(1)(c) - Defective Notice u/s 274 - Non specification of charge - HELD THAT:- In assessment proceedings under Section 143(3) of the Act has though initiated penalty has not given any specific satisfaction as to how the penalty should be imposed as well as no specific charge was mentioned in the original assessment order. The notice u/s 271(1)(c) read with Section 274 of the Act dated 26.12.2016 also does not mention exactly as to which charge of the levy of penalty should be taken into account in assessee’s case. The penalty order is also not revealing under which charge the Ao has levied penalty - AO has simply made observation hat the assessee evaded the income details and thereby concealed the particulars of income or furnished inaccurate particulars. But the intention of the provision of Section 271(1)(c) has given a mechanism as to on which specific limb penalty has to be levied. If the assessee furnished inaccurate particulars then the penalty proceedings will be separate and the reasoning will be separate to that extent. If the assessee has concealed the particulars of income, the reasoning has to be given by the AO to that extent. If both the limbs has been observed or identified in any particular assessee’s case then for both the limbs the AO has to give the reason either in assessment order or in penalty order itself, but that is a lacuna in the present penalty order under challenge. Therefore, on this ground the penalty does not sustain. Admittedly, in assessment order, in the penalty order and before the CIT(A), the CIT(A) also undisputedly quoted that the assessee offered profit at 1.1% in his return of income. Thus, the assessee has given full disclosure in his return of income itself and that cannot be held as inaccurate particulars of income or concealing of the income. Thus, Section 271(1)(c) of the Act does not apply in the present case. -Decided in favour of assessee.
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