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2019 (1) TMI 1797 - ITAT MUMBAIPenalty u/s 271AAB - undisclosed income - Invalid notice u/s 274 - proper explanation and disclosure was given during the course of search action in the statement recorded u/s. 132(4) and the disclosure so made was offered to tax in the return of income filed - HELD THAT:- Assessee with the panel provisions, it is pre-requisite that it should be evident from the notice, the intend and purpose for levying penalty as the purpose of the notice is to inform the assessee as to the specific charge for which he has been show caused so that he could furnish his reply without any confusion and to the point. In the present case, neither the assessee nor anyone else could make out as to whether the notice u/s. 274 r.w.s. 271 of the Act was issued for concealing the particulars of income or for furnishing inaccurate particulars of such income disabling it to meet with the case of the Assessing Officer. There are a catena of judgments highlighting the necessity for identifying the charge for which the assessee is being visited and in all those decisions, Hon'ble Courts have repeatedly held that where the jurisdictional notice is vague, similar to the one in the present case, the consequent levy cannot be sustained. The Hon’ble jurisdictional High Court in the case of CIT v. Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT] had also occasion to consider a similar issue. In this case, though proceedings u/s. 271(1)(c) of the Act were initiated for furnishing of inaccurate particulars of income, in the notice issued u/s. 274 r.w.s. 271 of the Act in the standard form, the charge for which it was issued was also not identified, as in the present case. We hold that the notice issued u/s 274 r.w.s 271 and incorporated 271AAB (in hand) was not valid. Consequently, the penalty proceedings are also invalid. Since the very basis of levy of penalty has been held to be invalid, we are of the view that the other grounds of appeal raised by the assessee against the merits of the levy of penalty requires no adjudication at this stage - Decided in favour of assessee.
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