https://www.taxtmi.com/caselaws?id=445951 ITAT Chandigarh allowed the assessee's appeal against penalty u/s 271(1)(c). The AO had assessed income at 1% of turnover presuming the assessee provided accommodation entries through bogus bills after rejecting books of accounts. However, the AO failed to record prima facie satisfaction in the assessment order for initiating penalty proceedings. The tribunal held that merely making additions on presumptive basis without proper direction for penalty initiation was insufficient to acquire jurisdiction under section 271(1B). The penalty proceedings were quashed due to procedural non-compliance. en-us Fri, 09 Jun 2023 00:00:00 +0530 Wed, 22 Nov 2023 22:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445951 ITAT Chandigarh allowed the assessee's appeal against penalty u/s 271(1)(c). The AO had assessed income at 1% of turnover presuming the assessee provided accommodation entries through bogus bills after rejecting books of accounts. However, the AO failed to record prima facie satisfaction in the assessment order for initiating penalty proceedings. The tribunal held that merely making additions on presumptive basis without proper direction for penalty initiation was insufficient to acquire jurisdiction under section 271(1B). The penalty proceedings were quashed due to procedural non-compliance. Case-Laws Income Tax Fri, 09 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445951