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The assessee’s identical sole substantive grievance raised in the instant appeal challenges correctness of both the lower authorities action imposing the penalty in issue of Rs. 3,21,026/- u/s 271(1)(c) of the Act. It emerges from the penalty notice dated 15.12.2016 that the Assessing Officer did not specify as to whether the assessee is accused of concealment of particulars of any taxable income or he had furnished inaccurate particulars of such income.

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Sec. 271(1)(c) of Income Tax Act, 1961— Penalty —Levy of penalty has to be clear as to the limb for which it is levied and the position being unclear penalty is not sustainable, therefore, when the Assessing Officer proposes to invoke the first limb being concealment, then the notice has to be appropriately marked, similar is the case for furnishing inaccurate particulars of income and the standard proforma without striking of the relevant clauses will lead to an inference as to non-application of mind - The show cause notice u/s. 274 is defective as it does not spell out the grounds on which the penalty is sought to be imposed, thus, levy of penalty cannot be sustained - ARUP KUMAR BHOWMICK V/s ITO - [2020] 28 ITCD Online 023 (ITAT-KOLKATA)