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TMI Blog2024 (3) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... rly records satisfaction for imposing penalty on one or other or both grounds mentioned in section 271(1)(c) of the Act, non-striking of irrelevant matter would render the notice defective and such defective notice vitiate the penalty proceedings. In the present case, we find that in assessment order the AOhad initiated penalty proceedings for furnishing inaccurate particulars of income only. Since, both limbs i.e. concealed particulars of income and furnished inaccurate particulars of income are recorded in the notice, the notice is defective. The penalty levied u/s. 271(1)(c) is liable to be deleted on the ground of defective notice as well. Decided in favour of assessee. - Shri Vikas Awasthy, Judicial Member And Shri S.Rifaur Rahman, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vied on addition based on estimations. To support his submissions, he placed reliance on the following decisions: (i) DCIT vs. Shyam Kundandas Gyanchandani, ITA No.2559/Mum/2022 For A.Y. 2009-10, decided on 03/02/2023. (ii) Fancy Diamond India Pvt. Ltd. Vs. DCIT, ITA No.961 to 963/Mum/2023, For A.Y. 2010-11 to A.Y. 2012-13, decided on 20/06/2023. (iii) Sushila Goyal Vs. ITO, ITA No. 3012/Del/2019 for A.Y. 2014-15, decided on 31/05/2023. 3. Per contra, Ms. Rajeshwari Menon representing the Department vehemently defended the impugned order. The ld. Departmental Representative submits that the assessee had indulged in bogus transactions. The assessee was not able to prove genuineness of the purchases hence, the Assessing Officer made addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act on estimated additions. There are catena of decisions by different High Courts and various Benches of the Tribunal wherein penalty levied u/s. 271(l)(c) of the Act on estimated additions has been held to be unsustainable. 6. Thus, in the facts of the instant case and the decisions referred above, we hold penalty levied u/s. 271(1)(c) of the Act unsustainable. Ergo, the Assessing Officer is directed to delete the penalty. 7. Further, during the study of appeal file we find that the assessee has placed on record penalty notice u/s. 274 r.w.s 271 of the Act dated 25/03/2015. A perusal of the notice reveals that it is in a pre-drafted Performa and mentions both limbs of section 271(1)(c) of the Act as, *have Concealed the particulars of y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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