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2014 (4) TMI 1170 - AT - Income TaxRevision u/s 263 - present assessment was made u/s 153A - assessee has surrendered the amount and has offered the surrendered amount by paying tax therefore - Penalty u/s 271AAA(1) not initiated - Held that:- It is not always necessary for the Assessing officer to initiate penalty proceedings if he is satisfied that the particular case is not fit for levy of penalty then the Assessing officer has powers not to initiate penalty proceedings because legislature has used the expression may in penal provision which shows that Assessing officer has discretionary power to initiate the penalty proceedings. In other words, in any such situation of not initiating penalty proceedings the Assessing officer has adopted one of the legal possible view. Whenever one of the legal possible view is adopted by the Assessing officer then such assessment order cannot be called erroneous and prejudicial to the interest of the Revenue. See Malabar Industrial Co. Ltd. v. CIT [2003] 243 ITR 83. In the case before us, the Assessing officer may be satisfied that since the assessee has surrendered the amount and has offered the surrendered amount by paying tax therefore this is not a fit case for levy of penalty and accordingly he may not have initiated penalty proceedings. Therefore such order cannot be called erroneous and prejudicial to the interest of the Revenue. - Decided in favour of assessee
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