Section 271(1)(c), 274 of Income Tax Act, 1961—Penalty u/s 271(1)(c)—in the instant case, appeal by assessee is directed against the order passed by CIT wherein CIT upholds the penalty u/s 271(1)(c).

Held that—We have perused the copy of the notice issued u/s 274 r.w.s 271 of the Act; dated 30/03/2015 and find that it reveals that the AO has not deleted the inappropriate words and parts in the relevant paragraph of the notice, whereby it is not clear as to which default has been committed by the assessee; i.e., whether it is for furnishing of inaccurate particulars of income or concealing particulars of income that penalty u/s 271(1)(c) of the Act is sought to be levied.

following the judgments of the Hon’ble Karnataka High Court in the cases of M/s Manjunatha Cotton & Ginning Factory (2013), we hold that the notice issued by the AO u/s 274 r.w.s 271 of the Act dated 30/03/2015 for initiating penalty proceedings for asst. year 2012-13 is invalid and therefore, the penalty proceedings conducted in pursuance thereof, are also invalid. We, therefore, delete the penalty levied u/s. 271(1)(c) of the Act for asst. year 2012-13.[MS. SIMRAN. K. SAYYED VERSUS INCOME TAX OFFICER, WARD - 1, GADAG.] [2019] 9 ITCD Online (8) [ITAT BANGALORE]