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2015 (10) TMI 2247 - AT - Income TaxPenalty u/s 271(1)(c) - Held that:- It is well settled proposition that the additions made in the assessment order would not automatically give rise to penalty. In the penalty proceedings, the assessing officer is required to examine the issues afresh and for that purpose the discussions made in the assessment order can be taken as guidance. In the instant cases, the assessing officer has imposed penalty without establishing that there was concealment of income. Accordingly, we are of the view that the basic condition for imposing penalty was not satisfied and hence the impugned penalty levied for the years under consideration is liable to be set aside. We also notice that, in the penalty notice issued by the AO, one of the limbs has not been struck off. However, in the assessment order, the assessing officer has clearly stated that the penalty proceedings are initiated for concealment of income. Hence, the legal issue urged by the assessee becomes debatable. The ld A.R also contended that there is no variation between the returned income and assessed income and hence the penalty was not leviable. Since we have deleted the penalty on merits, we do not find it necessary to adjudicate these legal issues. We set aside the orders passed by Ld CIT(A) and direct the assessing officer to delete the penalty levied u/s 271(1)(c) of the Act for the years under consideration. - Decided in favour of assessee.
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