TMI Blog2019 (7) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed under section 271(1)(c) cannot stand. We find support from the ratio laid down in CIT Vs. Shri Samson Perinchery [ 2017 (1) TMI 1292 - BOMBAY HIGH COURT] wherein it was held that where there is no proper satisfaction for initiating penalty proceedings and in the absence of proper show cause notice to the assessee, there is no merit in levy of penalty. In the present case, AO has failed to conclude which limb of section 271(1)(c) is applicable, hence order suffers from infirmity. Accordingly, we delete the penalty levied under section 271(1)(c). The grounds of appeal raised by assessee are thus, allowed. - Appeal of assessee is allowed. - ITA No.989/PUN/2017 - - - Dated:- 9-7-2019 - Ms. Sushma Chowla, JM And S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not permitted in view of the decisions in the cases of Karnataka High Court in Manjunath Cotton Ginning Factory (359 ITR 565) SSA's Emerald Medows (ITA No. 380 of 2015 - SLP is dismissed by Supreme Court in CC No.11485/2016) ITAT, Pune B Bench decision in Sanjog Tarachand Lodha (ITA No.688/PN/2014 dt. 31.08.2015) Therefore, it is prayed to cancel the penalty levied of ₹ 56,61,974/-, u/s 271(1)(c) of the I.T. Act. 4. The learned CIT(A) erred in confirming penalty u/s 271(1)(c), without considering the facts on record before her, submitted during the quantum appeal, against the addition made u/s 68 without properly appreciating that the addition made u/s 68 itself was illegal. Therefore, it is prayed to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 and added to the total income. The assessee has furnished inaccurate particulars of income and thus concealed his income and therefore, I am satisfied that penalty u/s 271(1)(c) is leviable. Accordingly, penalty u/s 271(1)(c) is initiated. 6. The Assessing Officer thus, while recording satisfaction for initiating penalty proceedings had held the assessee to have filed inaccurate particulars of income and also had concealed his income. In other words, the Assessing Officer has failed to come to finding as to which limb of section 271(1)(c) of the Act has not been fulfilled by assessee and thus, has not issued proper show cause notice to the assessee in this regard. Thereafter, penalty has been levied under section 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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