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2016 (10) TMI 977 - HC - Income TaxPenalty under Section 271(1)(c) - area of flat being sold in excess of 1000 sq.ft. being concealed - non entitled to the benefit of Section 80IB(10) - Held that:- The Assessing Officer under the Act considered the Respondent-assessee's explanation in the context in which the penalty proceedings were initiated and did not rightly place any reliance upon the subsequent events. In an appeal from the order of the Assessing Officer, the CIT(A) could not have imposed penalty on a new ground which was not the basis for initiation of penalty. The appeal before the CIT(A) was with regard to issue of penalty under Section 271(1)(c) of the Act only on the ground on which the penalty proceedings were initiated in the assessment order. Although the powers of CIT(A) are coterminus with that of the Assessing Officer, the imposition of penalty could be only the ground on which it was initiated. This is not the case, where the CIT(A) had independently initiated penalty proceedings on a new ground in an order in quantum proceedings in appeal from the Assessment Order. This alone could lead to the imposition of penalty under Section 271(1)(c) of the Act on the new ground. The ground on which the penalty was initiated and penalty imposed by the Assessing Officer, namely, that the flat had been sold in the project which was in excess of 1000 sq.ft., the Tribunal has recorded a finding of fact that the flats were sold individually by two separate agreements individually to the purchasers in joint names. However, two flats were subsequently joined by the purchasers aggregating the size of two flats to 1000 sq.ft. built up purchased from the Respondent-assessee. This is finding of fact which has not been shown to be perverse or arbitrary.
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