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2022 (4) TMI 164 - AT - Income TaxPenalty u/s 271(1)(c) - unexplained cash credits u/s.68 - HELD THAT:- We are of the considered view, that though the failure of the assessee to substantiate the authenticity of the loan transactions justified the dubbing of the same as unexplained cash credits u/s.68 of the Act, but the same on such standalone basis and nothing else would not suffice for saddling the assessee with penalty u/s 271(1)(c) of the Act. We may herein observe, that the Assessing Officer had neither in the course of assessment proceedings specified the default for which the impugned penalty proceedings had been initiated in the hands of the assessee nor had clearly pointed out the same while imposing the penalty vide his order passed u/s 271(1)(c) - In so far the assessment order passed u/s.143(3) is concerned, we find that the A.O had merely stated that penalty proceedings u/s.271(1)(c) of the Act are separately initiated. Coming to the order passed by the AO u/s 271(1)(c) of the Act, we find that while imposing the impugned penalty he had stated that the assessee had concealed his income and furnished inaccurate particulars of income. In our considered view, there is a clear absence of mentioning of the specific default for which impugned penalty proceedings was initiated and also, the basis for imposition of the same. We not being able to persuade ourselves to subscribe to the imposition of penalty u/s 271(1)(c) by the A.O, therefore, set-aside the order of the CIT(A) who had upheld the same - Decided in favour of assessee.
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