2019 (3) TMI 1158

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....of 157 days (128 days). ITA No.2023/PUN/2016 (By Revenue) 2. The effective ground raised by the Revenue in this appeal is as under :- "1. On the facts and in the circumstances of the case, whether the Ld. CIT(A) was correct in deleting the penalty by interpreting the provisions of section 271(1)(c) of the Act." 3. Briefly stated the relevant facts include that the assessee is a company engaged in marketing of agricultural products. The assessee filed the return of income declaring the total income at Nil. In the assessment proceedings, the Assessing Officer made an addition of Rs. 4,89,19,475/- determining the total income of the assessee as 'capital gain' and added the same in the hands of the assessee. Subsequently, the ....

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....luntary disclosure concealment of income. and thus " .......... .......... addition of concealed income after detection thereof and filed return in response to notice u/s 148 or 143(2) offering additional income, assessee cannot escape from penalty u/s 271(1)(c)." 7. Further, we also considered the fact in the computation zone of the penalty, where the Assessing Officer mentioned following lines at the time of initiating of penalty :- "Income in respect of which inaccurate particulars has been filed". 8. The above extracts reveal that the Assessing Officer suffers from ambiguity in his mind while recording the satisfaction at the time of initiation of penalty proceedings u/s 271(1)(c) of the Act. 9. Accor....

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....t going into the merits of the case, 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. 12. In the result, the appeal of the Revenue is dismissed. C.O. No.03/PUN/2019 (By Assessee) 13. In the cross objection, the assessee raised the following ground :- "The learned A.O. erred in levying penalty u/s 271(1)(c) without recording satisfaction whether it is a concealment of income or inaccurate particulars of income and to that extent failed to strike off un-necessary limb in the show cause notice." 14. As stated in the earlier paragraphs of this o....