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2019 (2) TMI 1578 - ITAT PUNEPenalty levied u/s 271(1)(c) - non recording of proper satisfaction - HELD THAT:- The assessee’s case is clearly covered under Explanation 1 to sub-section (1) of section 271 and AO held the assessee to have furnished inaccurate particulars of its income. In view of non recording of proper satisfaction by the Assessing Officer while initiating penalty proceedings u/s 271(1)(c) of the Act, wherein penalty was initiated for both the limbs i.e. concealment of income and furnishing of inaccurate particulars of income and thereafter also while levying penalty for concealing the income and furnishing inaccurate particulars of income; we find that in the absence of proper satisfaction being recorded and show cause being given to the assessee as to non fulfillment of either of the limbs of section, there is no merit in levy of aforesaid penalty under section 271(1)(c) of the Act. We find support from the ratio laid down in CIT Vs. Shri Samson Perinchery (2017 (1) TMI 1292 - BOMBAY HIGH COURT), wherein it was held that where there is no proper satisfaction for initiating penalty proceedings and in the absence of proper show cause notice to the assessee, there is no merit in levy of penalty. Accordingly, we delete the penalty levied under section 271(1)(c) - Decided in favour of assessee.
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