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2019 (1) TMI 281 - AT - Income TaxLevy of penalty u/s.271(1)(c) - leave encashment expenses added u/s.43B in the assessment order on grounds of concealment of income and furnishing inaccurate particulars - Leave encashment expenses were reported in Form 3CD and the failure to add back the same in computation of income was a bona-fide mistake - Held that:- So far as assessment order is concerned, the Assessing Officer has mentioned that penalty proceedings have been initiated for ‘furnishing of inaccurate particulars of income’. At the time of levying penalty in the assessment, Assessing Officer mentioned both limbs of clause (c) of section 271(1) i.e. ‘concealment of income’ as well as ‘furnishing of inaccurate particulars of income’. This manner of recording of satisfaction suggests the existence of ambiguity with reference to applicability of specific limb. Penalty order is unsustainable in law legally. The Assessing Officer is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty. The penalty order is liable to be quashed on this legal issue. Thus, the order of CIT(A) is set-aside and direct the Assessing Officer to delete the penalty. - decided in favour of assessee.
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