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2020 (1) TMI 155 - AT - Income TaxPenalty u/s. 271(1)(c) - non specifying specific limb of section. 271(1)(c) for violation of which Assessing Officer intents to impose penalty by striking off the inappropriate words in the show cause notice - HELD THAT:- AO did not strike off and specify the charge/limb for which he is proposing to initiate the penalty proceedings. In the assessment order Assessing Officer records that the penalty proceedings are initiated for furnishing inaccurate particulars and for concealment of income. However, in the penalty order passed U/s. 271(1)(c) of the Act the Assessing Officer records that it is a fit case for levy of penalty u/s. 271(1)(c) of the Act for furnished inaccurate particulars of income leading to concealment of income. Thus we hold that the notice issued by the AO U/s. 274 r.w.s 271(1)(c) of the Act is on account of non-application of mind and therefore the penalty proceedings initiated are bad in law. Thus, we direct the Assessing Officer to delete the penalty levied u/s. 271(1)(c) of the Act for both these appeals for the A.Y. 2013-14 and A.Y.2014-15. Penalty u/s. 271AAB - no search has been initiated u/s. 132 - HELD THAT:- As perused the Assessment Orders for the A.Y. 2013-14 and A.Y. 2014-15 and found that search and seizure operation was conducted u/s. 132 of the Act on 11.11.2014 on M/s. Geochem Laboratories Pvt. Ltd., based on which the assessments were framed in assessee’s case and nowhere in the Assessment Orders passed for the A.Y. 2013-14 and A.Y.2014-15 u/s.153C of the Act, it has been mentioned that search was initiated in assessee’s case. We also observed that penalty proceedings were initiated u/s. 271(1)(c) of the Act for the A.Y. 2013-14 and A.Y. 2014-15 in assessee case. Therefore levy of penalty u/s.271AAB the first and foremost condition to be satisfied is that search u/s. 132 of the Act should have been initiated on the assessee for invoking the provisions of section 271AAB of the Act and levying penalty under this provision. Similar view has been taken by various Tribunals as referred to above. In the case before us since there was no search and seizure operation initiated u/s. 132 of the Act, the penalty proceedings initiated u/s. 271AAB as against the provisions of statute. Thus, we quash the penalty order passed u/s. 271AAB - Decided in favour of assessee.
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