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2013 (7) TMI 808 - ANDHRA PRADESH HIGH COURTWhether the Tribunal was justified in differing with the view taken by the first appellate authority and holding that the penalty was leviable under section 271(1)(c) – Power to impose penalty under section 271 of the Act depends upon the satisfaction of the ITO in the course of the pro-ceedings - It cannot be exercised if he is not satisfied and has not recorded his satisfaction about the existence of the con-ditions specified in clauses (a), (b) and (c) before the proceedings are concluded – In the absence of a clear finding as to the concealment of income or deliberately furnishing inaccurate particulars, the initiation of penalty proceedings will be without jurisdiction – the law is correctly laid down in CIT V/s. Ram Commercial Enterprises Ltd. (1998 (10) TMI 13 - DELHI High Court) . Validity of proceddings u/s 271 - Held that:- The initiation of the proceedings under sec-tion 271(1)(c) against the assessee for the A.Y. 1982-83 and 1983-84 are not valid in law and the CIT (Appeals) had rightly set aside the same and that the IAT erred in law in sustaining the penalties and reversing the order of the CIT (Appeals) –AO should record in the assessment order his satisfaction that the assessee had either concealed the income or furnished inaccurate particulars of income in his return before imposing penalty - Court noticed that in the assessment orders passed by the AO for the A.Y 1982-83 and for the A.Y. 1983-84 no such satisfaction is recorded - decided in favour of assessee.
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