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2015 (11) TMI 1649 - AT - Income TaxRevision u/s 263 - CIT noticed that the AO assessed the amount of capital account as income of the assessee as unexplained cash credit - penalty proceedings u/s 271(1)(c) - Held that:- There is merit in the submissions made by the ld. AR. We notice that the CIT has not issued revision notice in connection with the non-initiation of the penalty proceedings u/s 271(1)(c) of the Act and hence the same cannot be subject matter of revision. SEE BS Sangwan Versus Income Tax Officer Ward 2, Sonipat [2015 (1) TMI 1011 - ITAT DELHI ] Casual perusal of the provisions of section 271(1)(c) of the Act would show that the AO “may” direct that the assessee shall pay by way of penalty. The use of word “May” gives discretion to the AO not to initiate penalty proceedings. Hence, the Commissioner, under the garb of revising the assessment order, cannot direct the AO to change his decision - Decided in favour of assessee
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