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2023 (4) TMI 85 - ITAT DELHIPenalty u/s 271(1)(c) - Validity of notice u/s 274 - validity of Notice issued u/s 274 of the Act, without specifying particular limb of penalty leviable u/s 271(1)(c)of the Act - HELD THAT:- The Hon'ble Karnataka High Court in the case of Manjunatha Cotton & Ginning Factory, [2013 (7) TMI 620 - KARNATAKA HIGH COURT] observed that the levy of penalty has to be clear as to the limb under which it is being levied. As per Hon'ble High Court, where the AO proposed to invoke first limb being concealment, then the notice has to be appropriately marked. The Hon'ble High Court also held that the standard proforma of notice u/s 274 of the Act without striking of the irrelevant clause would lead to an inference of non-application of mind by the Assessing Officer and levy of penalty would suffers from non-application of mind. It is imperative for the AO to specify the relevant limb so as to make the Assessee aware as to what is the charge made against him so that he can respond accordingly - we have no hesitation to delete the penalty levied by the AO and affirmed by the Ld. Commissioner. Appeal filed by the Assessee stands allowed.
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