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2017 (6) TMI 590 - ITAT HYDERABADPenalty u/s 271(1)(c) - Held that:- From the plain reading of section 271(1B), it clearly indicates that mere direction of the AO for initiating penalty proceedings under clause (c) of Sub-Section (1) of Section 271 of the Income-tax Act, 1961, is sufficient compliance. It is observed that the assessee’s case pertains to AY 2013-14, and the assessing officer has made the direction in the assessment order for initiation of penalty proceedings u/s 271(1)(c) and it sufficient compliance for recording the satisfaction for initiation of penalty proceedings. Therefore we hold that the Ld.CIT(A) is not correct in cancelling the penalty holding that there was no satisfaction of the AO for initiating the penalty and accordingly we set aside the orders of the CIT(A). The Ld.CIT(A) has not decided the case on merits and during the appeal hearing the Ld.DR did not place the statement recorded during the course of survey and the incriminating material found and seized. Therefore we remit the matter back to the file of the CIT(A) to decide appeal on merits.
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