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2019 (1) TMI 1403 - AT - Income TaxPenalty u/s 271(1)(c) - Revision u/s 263 - accepting the claim of the assessee that the lease rent was rightly shown by it under the head “Income from House property”, had thus allowed excess claim of deduction under Sec. 24(a) - Held that:- CIT-A had merely initiated penalty proceedings for furnishing of inaccurate particulars of income, but had nowhere recorded his satisfaction as to furnishing of inaccurate particulars of income by the assessee, therefore, the same suffers from a jurisdictional defect, which in our considered view renders the penalty imposed by him under Sec. 271(1)(c) as invalid in the eyes of law. As observed the provisions of Sec. 271(1B) would not be applicable in the case before us wherein penalty proceedings under Sec. 271(1)(c) had been initiated by the Pr. CIT in his order passed under Sec. 263, therefore, the aforesaid judicial pronouncements would hold the ground in respect of the abovementioned proposition of law. We thus in terms of our aforesaid observations are of the considered view that the Pr. CIT-2, Jalandhar had wrongly assumed jurisdiction and imposed penalty under Sec. 271(1)(c) in the hands of the assessee. We thus in terms of our aforesaid observations conclude that as the imposition of penalty under Sec. 271(1)(c) by the Pr. CIT-2, Jalandhar suffers from a jurisdictional defect, therefore, the same cannot be sustained and is herein quashed.
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