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2019 (12) TMI 1104 - AT - Income TaxPenalty u/s 271(1 )(c) - non recording of proper satisfaction in terms of provisions of section 271(l)(c) - whether the assessee has concealed particulars of income or has furnished inaccurate particulars of such income during assessment proceedings - HELD THAT:- Satisfaction recorded by the AO shows that at the time of initiating penalty AO himself was not aware enough if he has initiated the penalty proceedings on account of furnishing of inaccurate particulars of income or for concealment of income by the assessee rather mechanically sought to initiate the penalty proceedings u/s 271(1)(c) of the Act. When initiation of the penalty itself is not valid, it does not provide any cause of action as required u/s 271(1)(c) of the Act to levy the penalty on the assessee. Moreover when AO has not recorded valid satisfaction required u/s 271(1)(c) notice issued u/s 274 read with section 271(1)(c) to initiate the penalty proceeding is not specified one so as to make out if the assessee has concealed particulars of income or has furnished inaccurate particulars of such income. Ratio of CIT vs. SSA’s Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] is applicable to the facts and circumstances of the present case because when at the time of initiating the penalty proceedings AO was not clear enough as to whether penalty proceedings have been initiated for concealment of particulars of income or furnishing inaccurate particulars of income, penalty cannot be levied. - Decided in favour of assessee.
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