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2019 (1) TMI 1356 - AT - Income TaxPenalty u/s. 271(1)(c) - whether framing assessment order has not given clear direction for initiation of levy of penalty u/s. 271(1)(c) but simply has made an endorsement at the end of the assessment order that “penalty u/s. 271(1)(c) is initiated separately? - Held that:- We find that the direction for initiation of penalty proceedings could not be gathered from the assessment order, Since in the assessment order the AO at the end the AO has merely stated “penalty u/s. 271(1)(c) are separately initiated” do not comply with the meaning of the word direction as contemplated even as per the amendment inserted u/s. 271(1B). In the absence of clear and unambiguous direction as contemplated under law by the AO in the assessment order, it cannot be considered as direction as per law to initiate penalty u/s. 271(1)(c) of the Act. In the aforesaid factual scenario, and the law as laid in MWP Ltd. (2013 (12) TMI 1214 - KARNATAKA HIGH COURT) we cancel the penalty levied by the AO. Therefore, we cancel the penalty imposed u/s. 271(1)(c) of the Act. This ground of appeal of assessee is allowed.
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