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the show cause notice issued in the presentcaseu/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealing particulars of income or furnishing inaccurate particulars of income. The show cause notice u/s 274 of the Act does not strike out the inappropriate words. In these circumstances, we are of the view that imposition of penalty cannot be sustained. The plea of the ld. Counsel for the assessee which is based on the decisions referred to in the earlier part of this order has to be accepted. We therefore hold that imposition of penalty in the presentcasecannot be sustained and the same is directed to be cancelled.” Respectfully following the aforesaid order of the coordinate bench of this Tribunal, we, therefore, hold that imposition of penalty and subsequently confirmed by the Ld. CIT(A) in the presentcasecannot be sustained and the same is hereby deleted. Therefore, the appeal of assessee is allowed. 6. In the result, the appeal of assessee is allowed.

Sec. 271(1)(C) Of Income Tax Act, 1961—Penalty - The sole ground of appeal of the assessee is against the action of the CIT(A) in confirming the penalty imposed by AO u/s. 271(1)(c) of the Act. The AO did not strike out the irrelevant portion of the fault/charge which would have spelt out the specific fault/charge against the assessee. According to the assessee, since the proposed notice itself is a defective notice and bad in law the penalty imposed by the AO u/s. 271(1)(c) of the Act and confirmed by the CIT(A) should be deleted. ITAT allowed the appeal of the assessee holding that “the show cause notice issued in the present case u/s 274 of the Act does not specify the charge against the assessee as to whether it is for concealing particulars of income or furnishing inaccurate particulars of income. The show cause notice u/s 274 of the Act does not strike out the inappropriate words. In these circumstances, we are of the view that imposition of penalty cannot be sustained. The plea of the ld. Counsel for the assessee which is based on the decisions referred to in the earlier part of this order has to be accepted. We therefore hold that imposition of penalty in the present case cannot be sustained and the same is directed to be cancelled.” - SHRI MUKESH KUMAR KHAITAN V/s ASSTT. CIT - [2020] 23 ITCD Online 115 (ITAT-KOLKATA)
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