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2018 (8) TMI 842 - AT - Income TaxLevy of penalty u/s 271 - while confirming the penalty imposed by the AO, CIT(A) enhanced the penalty amount - Held that:- The recording of satisfaction without mentioning of specific charge is against the principles of natural justice. The assessee should know the specific charge against which he has to defend in penalty proceedings. It is further observed that the Assessing Officer has not levied penalty u/s. 271(1)(c) in respect of additional income declared after recording of satisfaction. The Commissioner of Income Tax (Appeals) in First Appellate proceedings levied penalty on the above said additional income by exercising power of enhancement. It is a well settled law that the authority who has recorded satisfaction alone can levy penalty. In our considered view, the Commissioner of Income Tax (Appeals) in the present case has exceeded his jurisdiction and has levied penalty on the addition for which the satisfaction was recorded by the Assessing Officer. A conjoint reading of satisfaction recorded and the order levying penalty shows that there was ambiguity in the mind of Assessing Officer while levying penalty. The satisfaction has been recorded for concealment and penalty has been levied for both the charges i.e. inaccurate particulars of income and concealment of income. The order levying penalty set aside - Decided in favor of assessee.
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