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2019 (3) TMI 1158 - ITAT PUNEPenalty u/s 271(1)(c) - Defective notice - return of income declaring the total income at NIL - addition of capital gain - recording the satisfaction at the time of initiation of penalty proceedings u/s 271(1)(c) - HELD THAT:- The legal requirement of making a clear cut reference to the applicable limb of clause (c) of section 271(1) of the Act is not met by the Assessing Officer while initiating and levying the penalty u/s 271(1)(c) of the Act. Thus, the satisfaction suffers from ambiguity in the mind of the Assessing Officer. Therefore, we are of the opinion that, considering the above referred binding judgments, such penalty order is unsustainable in law legally. It is a settled legal proposition that the Assessing Officer is under obligation to specify the appropriate limb of clause (c) of section 271(1) of the Act at the time of initiation as well as at the time of levy of penalty. We are of the opinion that the order of the CIT(A) is reasoned one on this legal issue. Thus, we do not find any infirmity in the order of the CIT(A) on this legal issue. Accordingly, the ground raised by the Revenue is dismissed.
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