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2019 (1) TMI 595 - ITAT INDORELevy of penalty u/s 271(1)(c) - addition has been made by estimating G.P and working out stock at a given date assuming that G.P% remains same throughout the year - defective notice - Held that:- It is an established position of law that the A.O at the time of issuing notice u/s 274 r.w.s. 271(1)(c) has to give positive and clear cut finding in the body of the show cause notice itself reflecting the charges against the assessee as to whether penalty proceeding are initiated for concealment of particulars of income or for furnishing inaccurate particulars of income. We find that in the body of the notice issued u/s 274 r.w.s. 271(1)(c) of the Act the Ld.A.O failed to mention the limbs for which penalty proceedings have been initiated. It is the negligence of the Ld. A.O in not making proper specific charge in the notice u/s 274 about the addition for which penalty proceedings have been initiated. Ld. A.O should be clear as to whether the alleged addition goes under the limb of “concealment of particulars of income” or “furnishing inaccurate particulars of income”. Notice issued u/s 271(1)(c) dated 19.5.2014 is invalid, untenable and suffers from the infirmity of non application of mind by the Assessing Officer. - Decided in favour of assessee.
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