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2022 (8) TMI 1079 - AT - Income TaxPenalty u/s 271(1)(c) - Defective notice u /s 274 - Addition on account of cash credits u/s 68 - allegation of non specicication of clear charge - HELD THAT:- There is no dispute with regard to the fact that the notice issued u/s 271(1)(c) of the Act is defective. The AO failed to strike down the correct limb under which he sought to impose penalty. Undisputedly, the AO was required to specify the charge. The Revenue has not pointed out from the record that any notice u/s 271(1)(c) of the Act specifying the particular charge was issued to the assessee. There is a complete non-application of mind by the assessing authority hence, has simply put her signature without stating the guilt of the assessee. The case laws as relied by Ld. Sr. DR are not applicable on the facts of the present case. On the contrary, the ratio of judgement of the Hon’ble Delhi High Court in the case of Sahara India Life Insurance Company [2019 (8) TMI 409 - DELHI HIGH COURT] is squarely applicable. We hereby quash the penalty order and impugned penalty is thus, deleted. The grounds raised by the assessee are allowed.
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