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2012 (9) TMI 291 - HC - Income TaxConcealment of income - Penalty and demand notices issued accordingly - Criminal prosecution against assessee - Held that:- Considering date of filing of the return, date of processing the return and date of issuance of the said notice, it is evident that the penalty notice, dated 24.2.1994, has been issued not in the course of survey proceedings u/s 133A but after its closure. Thus, there is jurisdictional defect in assumption of jurisdiction for levy of penalty, which cannot be cured. Consequently, the impugned penalty notice has been issued contrary to the express provisions of section 271(1)(c) as no penalty notice under Section 271(1) (c) was issued in the course of assessment proceedings, thus the assumption of jurisdiction by the AO for initiation of impugned penalty proceedings is not valid. Since the order whereby penalty was imposed on the petitioners had been quashed by the Tribunal, the criminal prosecution of the petitioners was liable to be quashed - in favour of assessee.
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