2018 (12) TMI 288

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....c) of the Income Tax Act (the Act) as passed by the AO without appreciating the facts, submissions and documents placed on record. Without prejudice 2. No default has been committed during the year under consideration The learned CIT(A) erred when he sustained the penalty levied u/s.271(1)(c) without appreciating the fact that the default-inaccurate furnishing or concealing the particulars of income, if any, has not been committed in the year under consideration. 3. No satisfaction before initiation of the penalty The learned CIT(A) erred in law while sustaining the penalty when the AO neither recorded satisfaction before initiating the penalty proceedings nor does his satisfaction discern from records. 4. Not finding on charge for ....

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....the First Appellate proceedings, the CIT(A) confirmed the said penalty imposed of Rs. 66,800/-u/s. 271(1)(c) of the Act. 4. Aggrieved with the order of CIT(A), the assessee filed the present appeal before the Tribunal with the grounds as extracted above. BEFORE THE TRIBUNAL 5. Hearing of notice was issued on 13.11.2018 for 29.11.2018. Notice was served on the assessee 26.11.2018 as is evident from the acknowledgement placed on record. Today i.e. on 29.11.2018, one adjournment application dated 28.11.2018 has been filed stating assessee's inability to appear before the Court. Considering simplicity of the facts and issue under consideration, we refused to accept the said adjournment application and the issue raised in appeal is being adju....

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....eparately initiated" 9. We also perused the penalty order dated 19.09.2014 and find the satisfaction recorded by the AO for levying the penalty u/s.271(1)(c) of the Act is relevant for extraction. The said satisfaction reads as under: "6.3............. Since the assessee has not substantiated any reasonable cause for furnishing the inaccurate particulars, hence the act of assessee made him liable for penalty u/s.271(1)(c) of the Act, 1961." From the above, it is evident 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) of the Act in the order of assessment. The penalty order suggests the levy of penalty for the default of furnishing of inaccurate ....