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2020 (1) TMI 93 - HC - Income TaxPenalty u/s 271(1)(c) - no proper recording of satisfaction - HELD THAT:- Both the Commissioner (Appeals) as well as the ITAT have categorically held that in the present case, there is no record of satisfaction by the AO that there was any concealment of income or that any inaccurate particulars were furnished by the assessee. This being a sine qua non for initiation of penalty proceedings, in the absence of such petition, the two authorities have quite correctly ordered the dropping of penalty proceedings against the petitioner. Besides, we note that the Division Bench of this Court in Samson [2017 (1) TMI 1292 - BOMBAY HIGH COURT] as in New Era Sova Mine [2019 (7) TMI 1002 - BOMBAY HIGH COURT] has held that the notice which is issued to the assessee must indicate whether the Assessing Officer is satisfied that the case of the assessee involves concealment of particulars of income or furnishing of inaccurate particulars of income or both, with clarity. If the notice is issued in the printed form, then, the necessary portions which are not applicable are required to be struck off, so as to indicate with clarity the nature of the satisfaction recorded. In both Samson Perinchery and New Era Sova Mine (supra), the notices issued had not struck of the portion which were inapplicable. From this, the Division Bench concluded that there was no proper record of satisfaction or proper application of mind in matter of initiation of penalty proceedings - No substantial questions of law
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