Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1521 - AT - Income TaxLevy of penalty u/s 271(1)(c) - initiation of penalty proceedings without recording satisfaction - contrast between the order levying penalty under section 271(1)(c) and the appellate order - unaccounted investment in purchase of shops - Held that:- In the facts of the present case, we find that the Assessing Officer has not recorded any satisfaction as to which limb of section 271(1)(c) of the Act has not been fulfilled and have not issued show cause notice in this regard and hence, initiation of penalty proceedings are bad in law. There was a contrast between the order levying penalty under section 271(1)(c) of the Act and the appellate order, wherein the penalty has been levied by the Assessing Officer for violation of Explanation 1 to section 271(1)(c) of the Act and the CIT(A) has confirmed the same for furnishing inaccurate particulars of income by concealing the income of ₹ 85 lakhs. First of all, the Assessing Officer has failed to record any satisfaction and further, the order of the Assessing Officer levying penalty is for concealment of income and the order of CIT(A) confirming the levy of penalty is on furnishing of inaccurate particulars of income. Such contrary orders by the Assessing Officer and the CIT(A) cannot survive as they have failed to come to conclusion as to whether the assessee has concealed its income or furnished inaccurate particulars of income. It cannot be a case of satisfaction of both of limbs, one by the Assessing Officer and the second by the CIT(A). Hence, there is no merit in levy of penalty under section 271(1)(c) of the Act where the initiation of penalty proceedings is without recording satisfaction. Further, levy of penalty under section 271(1)(c) of the Act, which has been levied by the Assessing Officer for concealment of income but has been confirmed by the CIT(A) for furnishing inaccurate particulars of income again suffers from infirmities and cannot be upheld. - Decided in favour of assessee.
|