Sec. 271(1)(c) of Income Tax Act, 1961 - Penalty - The assessee filed its return for the year under consideration declaring total income of Rs. 3,84,030/-. In the assessment completed under section 143(3), the total income of the assessee was determined by the AO at Rs. 12,72,802/- after making the addition of Rs. 9,04,963/- to the total income of the assessee by disallowing its claim for long-term capital gain and also imposed the penalty of Rs. 2,79,630/- under section 271(1)(c) of the Act. CIT(Appeals) confirmed the said penalty his appellate ex-parte order. ITAT held that the show cause notice u/s. 274 of the Act is defective as it does not spell out the grounds on which the penalty is sought to be imposed. Following the decision of the various decisions on the same issue, ITAT cancelled the penalty imposed. Appeal allowed.—CORONATION REFRIGERATION INDUSTRIES LIMITED vs. ITO.[2020] 26 ITCD Online 034 (ITAT-KOLKATA)