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2022 (5) TMI 1089 - AT - Income TaxPenalty u/s 271(1)(c ) - Defective notice - non-mentioning of relevant limb - As argued penalty had been initiated for both the offences, which is not permissible under law as it suffers from the vice of non-application of mind - HELD THAT:- We are of the view that non-mentioning of relevant limb in the penalty notice is a substantive defect and infirmity which goes to the root of the matter and is not curable a the later stage. The case of the assessee is squarely covered by the decision of the Hon’ble Apex Court case of CIT vs. SSA’s Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] - In the said decision , the Hon’ble Court has dismissed the SLP filed by the Revenue by observing that there is no merit in the petition of the revenue upholding the order of Hon’ble High Court [2016 (8) TMI 1145 - SC ORDER] wherein the decision of the coordinate division bench in the case of CIT Vs Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT] has been followed. In all the above decision it has been held that non mentioning of relevant limb or non striking off of irrelevant limb in the penalty notice is a substantive defect in the imitation of proceedings itself and the consequent penalty levied on the basis of such defective notice can not be sustained. In view of these facts and circumstances of the case, we are inclined to set aside the order passed by the Ld. CIT(A) and direct the AO to delete the penalty. The ground no. 3 is allowed.
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