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TMI Blog2021 (9) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... e same mistake in the penalty order as well. Respectfully following the case of MR. MOHD. FARHAN A. SHAIKH VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1 BELGAUM., THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1, BELGAUM. [ 2021 (3) TMI 608 - BOMBAY HIGH COURT] we overturn the impugned order on this legal issue and direct to delete the penalty. - Decided in favour of assessee. - ITA Nos. 474 & 2000/PUN/2017 - - - Dated:- 2-9-2021 - R.S. Syal, Vice President And S.S. Viswanethra Ravi, Member (J) For the Appellant : M.K. Kulkarni For the Respondents : T. Vijaya Bhaskar Reddy ORDER Per R. S. Syal, VP These two appeals by the assessee are directed against two separate orders passed by the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons made for unpaid octroi duty; excess depreciation; disallowance of advertisement and sales promotion expenses; sundry balances of debtors and advances written off. It is thus vivid that none of the items of additions relates to 'concealment of income' and all the items fall under the category of 'furnishing of inaccurate particulars of income'. 5. A copy of notice u/s. 274 of the Act dated 26-12-2006 has been placed at page 28 of the paper book in which both the limbs, namely, concealing the particulars of income or furnishing of inaccurate particulars of income are present. In other words, there is no striking out of the irrelevant limb of the penalty. Thereafter, the penalty order came to be passed by the AO on 30-03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hotels and Resorts (P.) Ltd. (2021) 124 taxmann.com 249 (SC). 7. In view of the overwhelming legal position, it is clear that where the charge is not properly set out in the notice u/s. 274, viz., both the limbs stand therein without striking off of the inapplicable limb, the penalty order gets vitiated. Turning to the facts of the extant case, we find from the notices u/s.274 of the Act that the AO did not strike out the irrelevant limb and further committed the same mistake in the penalty order as well. Respectfully following the Full Bench judgment of the Hon'ble jurisdictional High Court, we overturn the impugned order on this legal issue and direct to delete the penalty. 8. In the result, the appeal is allowed. ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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