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2019 (7) TMI 667 - ITAT PUNEPenalty u/s 271(1)(c) - non recording the satisfaction at the time of initiation of penalty proceedings - HELD THAT:- We are of the opinion that the legal requirement of making a clear cut reference to the applicable limb of clause (c) of section 271(1) is not met by the AO while initiating and levying the penalty u/s 271(1)(c). Thus, the satisfaction of the AO suffers from ambiguity in his mind. Considering the above referred binding judgments, we are of the view that such penalty is unsustainable in law legally. It is a settled legal proposition that the AO is under obligation to specify the appropriate limb of clause (c) of section 271(1) at the time of initiation as well as at the time of levy of penalty. Without going into the merits of the case, we set-aside the order of the CIT(A) and direct the Assessing Officer to delete the entire penalty imposed by him. Accordingly, the grounds raised by the assessee are allowed on legal issue. - Appeal of the assessee is allowed.
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