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2020 (2) TMI 834 - ITAT MUMBAIPenalty u/s 271(l)(c) - defective notice - non specification of charge - Assessee concealed his income from proprietary concern in which name the assessee has opened two bank accounts and made addition on maximum peak credit in both the accounts - HELD THAT:- There is no dispute that the AO during the assessment on the basis of AIR information noted that the assessee was maintaining bank accounts with HDFC Bank Ltd in the name of proprietary concern Krishna Enterprises. The income from Krishna Enterprises was not disclosed by assessee in the income offered for taxation. The AO added peak credit of both the bank accounts. The AO while passing the assessment order initiated penalty for concealing the particulars of income and furnishing inaccurate particulars of income. However, while levying the penalty, the AO levied penalty only for concealment of income. In reply to the show cause notice the assessee explained that due to oversight the assessee could not disclosed the bank account. However, the AO while levying penalty not accepted the explanation furnished by assessee. The AO recorded that the assessee has not disclosed the transaction in the bank statement of his proprietory concern. The AO nowhere recorded that the assessee was with some other name or running more than one proprietorship. We noted that the AO, failed to discharge his onus as he was not sure at the initiation of penalty under section 271(1)(c) for which specific charge of penalty has been initiated by the AO. Even while levying the penalty also, the AO simply relied on the Explanation 1to s. 271(1)(c). Therefore, in our opinion, the basis of levy of penalty itself is not correct. Basis of levy of penalty itself is not correct. Thus, we direct the assessing officer to delete the penalty. In the result the appeal of the assessee is allowed.
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