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2018 (3) TMI 1583 - AT - Income TaxPenalty levied u/s 271(1)(c)read with Explanation 5A - assessee as stressed that in the notice issued under section 274 of the Act, there is no striking of inappropriate limb - Held that:- As satisfaction was recorded by the Assessing Officer that the assessee had concealed its income and penalty was also levied on the same account under Explanation 5A to section 271(1)(c) of the Act. This issue has already been adjudicated at length by us in the case of Kanhaiyalal D. Jain Vs. ACIT [2016 (12) TMI 1238 - ITAT PUNE]S we have held that where recording of satisfaction by the Assessing Officer while initiating penalty is clear and not ambiguous, then merely because one of the limbs has not been struck off the notice, does not make the proceedings invalid. In view of the same, we find no merit in the plea of assessee and the same is dismissed. Levy of penalty us 271(1)(c) - claim of deduction under section 54 - Held that:- The assessee having made a wrong claim in the return of income i.e. by way of claim of deduction under section 54 on account of investment in two properties and in respect of capital gains account with bank not having been made by the assessee, tantamount to furnishing of inaccurate particulars of income and justifiably, penalty under section 271(1)(c) of the Act is leviable on such furnishing of inaccurate particulars of income. Assessment made u/s 153C or 148 - documents were found during the course of search at the residence of partners of assessee firm on the basis of which, additional income was to be assessed in the hands of partnership firm - Held that:- When during the course of search under section 132 of the Act at the residence of Mrs. Vasundhara S. Joshi and Shri Shailesh Joshi, loose paper bundle Nos.6, 7, 8 and 9 were found, which depicted the receipts and expenditure relating to different outlets being run under the partnership firms and the additional income was also offered by the persons searched on behalf of partnership firms, in which he was partner, on the basis of such documents found during the course of search, then for making addition in the hands of partners, provisions of section 153C of the Act are attracted. Once the said provisions are so attracted, then there is no question of initiating any proceedings under section 147 / 148 of the Act. Accordingly, we hold that proceedings initiated under section 147 / 148 of the Act are thus, not correctly initiated. Validity of penalty proceedings u/s 271(1)(c) - Held that:- As in the given circumstances, proceedings under section 153C of the Act were required to be initiated and not proceedings under section 148 of the Act, though the assessee had participated in assessment proceedings but the same does not preclude the assessee from raising this jurisdictional issue while arguing the appeal relating to levy of penalty for concealment under section 271(1)(c) of the Act. We hold that in such circumstances, the initiation of penalty proceedings under section 271(1)(c) of the Act is invalid and bad in law. Consequently, penalty order passed under section 271(1)(c) of the Act does not survive
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