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2018 (12) TMI 288 - AT - Income TaxLevying penalty u/s.271(1)(c) - Recording of valid/ proper satisfaction by the AO - default of furnishing of inaccurate particulars of income - Held that:- At the time of initiation of penalty proceedings in the assessment, AO did not mention any of the limbs of clause (c) of section 271(1) in the order of assessment. The penalty order suggests the levy of penalty for the default of furnishing of inaccurate particulars of income. This manner of recording of satisfaction suggests the existence of ambiguity with reference to applicability of specific limb of the clause. The same falls short of the legal requirement. Considering the binding judgments such penalty order is unsustainable in law legally. AO is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty. Penalty order is liable to be quashed on this legal issue. Thus, the order of CIT(A) is set-aside and direct the AO to delete the penalty. Accordingly, the grounds of appeal raised by the assessee are allowed.
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