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2022 (6) TMI 746 - ITAT DELHIPenalty u/s 271(1)(c) - Mandation of sufficient compliance of recording of satisfaction in terms Section 271(1)(c) - assessee had made patently wrong claim of depreciation on residential property and patently wrong claim of deduction of interest which was capitalized in precededing assessment year as revenue expenditure - HELD THAT:- As in the assessment order and penalty order there is apparent ambiguity as to what was the basic fround for penalty. On other hand it is also established that the notice issued u/s 274 r.w.s. 271(1)(c) of the Act was defective as it was not clear as which limb the penalty was levied. Reliance in this regard can be placed on the judgment of Hon’ble Bombay High Court in Commissioner of Income Tax -11 vs. Shri Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT] - Thus, the ground raised by the assessee by virtue of Rule 27 of the Rules 1963 are sustained and the notice dated 25.02.2013 is held to be invalid and the penalty proceedings order dated 09.02.2015 is set aside. - Decided in favour of assessee.
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