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2020 (5) TMI 383 - AT - Income TaxPenalty u/s 271(1)(c) - non recording of satisfaction - HELD THAT:- AO did not record his satisfaction for initiation of penalty proceedings, because while passing the assessment order passed u/s.143(3) of the I.T. Act, the AO has stated that Penalty proceedings u/s. 274 read with section 271(1)(c) has been issued separately for concealment of income and furnishing of inaccurate particulars of such income which is not sufficient and therefore, the penalty proceedings cannot be said to be validly initiated under such circumstances - nowhere in the assessment order states the specific charge of alleged concealment and / or furnishing of inaccurate particulars of income. Similarly, in the penalty order passed u/s. 271(1)(c) the Dy. Commissioner of Income Tax, Circle-1, Ghaziabad has mentioned that it is a case of deliberate concealment of income by furnishing inaccurate particulars. Therefore, penalty u/s. 271(1)(c) is clearly attracted in this case which is not sufficient to levy the penalty in dispute. Therefore, the entire penalty proceedings stand vitiated, because it is not in accordance with law, in view of the law settled in case CIT & Anr. Vs. M/s SSA’s Emerald Meadows – [2015 (11) TMI 1620 – Karnataka High Court ] - Decided in favour of assessee.
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