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2024 (1) TMI 1033 - ITAT DELHIPenalty u/s 271(1)(c) - validity of notice u/s 274 as it not indicated as to under which limb of the said section the notice has been issued - HELD THAT:- If we consider the penalty notice the same shows that without striking off as to which of the part the said notice, the assessee was called on to reply, the notice was issued. The notice does not make it clear if the assessee was called upon to explain for concealment of particulars of income or for furnishing inaccurate particulars of income. As there is substance in the contention of the ld. AR that in the absence of striking off specific limb in the notice, the notice was invalid and the consequential penalty order is not sustainable in law. Reliance in this regard can be placed on the judgement of Sahara India Life Insurance Company Ltd.[2019 (8) TMI 409 - DELHI HIGH COURT] Even otherwise, we have, vide our separate order [2024 (1) TMI 696 - ITAT DELHI] already deleted the additions made by the ld. AO arising out of disallowance of depreciation and in regard to other issues of disallowance on deferred expenditure, the issue has been restored to the files of CIT(A). Therefore, on merits also the penalty is not sustainable. Assessee appeal allowed.
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