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2017 (11) TMI 964 - AT - Income TaxPenalty u/s. 271(1)(C) - non recording of satisfaction by AO - Held that:- We find that the AO while passing the assessment order dated 6.6.2005 has stated that notice u/s. 271(1)© for the additions have been issued separately, without recording the satisfaction for initiation of penalty proceedings. We further find that in the penalty order dated 6.2.2007 the AO mentioned that “subsequently a show cause notice u/s. 271(1)© has been issued dated 29.11.2006 fixing date of hearing 14.12.2006, but assessee failed to make the compliance the said notice. It is therefore presumed that assessee has nothing to say in this regard. As per AO it is fit case for imposition of penalty u/s. 271(1)© of the I.T. Act. Minimum and Maximum imposable penalty comes to ₹ 4,47,900/- and ₹ 14,13,700/-. I imposed the minimum penalty of ₹ 4,47,900/- with the approval of Addl. CIT, Range-I, Meerut.”, which shows that penalty proceedings ought to fail, ambiguous and vague in as much as in the penalty order it is nowhere stated that the penalty was imposed on which account i.e. concealment of particulars of income or furnishing of inaccurate particulars. In view of the above, we are of the considered view that the entire penalty proceedings stand vitiated as the same is not in accordance with law and without recording of satisfaction. - Decided in favour of assessee.
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