2019 (4) TMI 567

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....an appeal filed by the assessee against the order of the Commissioner of Income Tax(Appeals)-1, Bhubaneswar dated 25.1.2019 for the assessment year 2009-10. 2. The only issue raised in this appeal is against the order of the CIT(A) confirming levy of penalty of Rs. 2,31,130/- under section.271(1)(c) of the Act by the Assessing Officer in respect to addition of bogus sundry creditors of Rs. 5,94....

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....d his satisfaction. Therefore, the penalty proceedings is without jurisdiction. Ld counsel for the assessee relied on the decision of Hon'ble A.P.High Court in the case of V.V.Projects and Investments Pvt Ltd., 300 ITR 40(AP). 5. When these facts were pointed out by this Bench to ld Departmental Representative, he only relied on the assessment order, penalty order and the order of the CIT(A). ....

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.... also clear that such satisfaction of the AO must be spelt out in the order of assessment itself and cannot be assumed from the issue of a notice u/s.271(1)(c) of the Act. Failure to record such satisfaction amounts to a jurisdictional defect which cannot be cured. It is also relevant to note that whether the assessee has concealed his income or has deliberately furnished inaccurate particulars th....