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2023 (11) TMI 983 - ITAT BANGALORELevy of penalty u/s 271(1)(c) - Defective notice u/s 274 - non specification of clear charge - penalty was levied for ‘concealment of income’ when the proceedings were initiated for ‘furnishing inaccurate particulars of income’ - HELD THAT:-Though the ld. AO initiated the penalty for furnishing inaccurate particulars of income, however, he levied the penalty for concealment of income. It is settled principle that whenever ld. AO initiate the levy of penalty either for furnishing inaccurate particulars of income or for concealment of income, he should specify the same and bring to the notice of the assessee so that the assessee would be in a position to give reply to the levy of penalty under which circumstances penalty has been levied. In our opinion, AO has not applied his mind while passing the penalty order and not given fair opportunity of hearing to the assessee to show cause as to why the penalty cannot be levied for concealment of income and since he has initiated the penalty only for furnishing inaccurate particulars of income. This action of the ld. AO cannot be upheld. Penalty should be clear as to the limb for which it is levied and the position being unclear here, the penalty is not sustainable. See Manjunatha Cotton & Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT]. Decided in favour of assessee.
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