TaxTMI 
TaxTMI 
2016 (7) TMI 1647
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.... revenue came to be dismissed. 2. The facts of the case are that the return of income was filed on 28/11/2000 declaring loss of Rs.23,31,81,901/. The AO passed assessment order under Section 143 (3) of the IT Act determining the total income of Rs.18,36,04,833/after rejecting the books of accounts and estimating the profit @ 6% and making addition of Rs.1,42,85,226/under Section 40(a)(i) of the Act. 2.1 The assessee filed an appeal before the CIT (A) whereby it reduced the rate of total receipts from 6% to 1.8% of the total receipts and deleted the addition of Rs.1,42,85,226/under Section 40(a)(i) of the Act. 2.2 Both the department and revenue went in the appeal before the Tribunal against the order of the CIT (A) and the Tribunal set a....
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....inly contended that the order passed by the learned tribunal is erroneous since in the facts and circumstances of the case it does not warrant cancellation of the penalty proceedings. He has contended that the AO has initiated the penalty proceedings under section 27(1)(c) of the Act in the assessment order passed on 12/03/2003 on all the issues on which disallowance / additions were made. He has also contended that the Tribunal has set aside only some issues to the file of the AO for its fresh adjudication and not the entire order. He has also contended that the penalty proceedings initiated in the assessment order, which are separate proceedings than the assessment proceedings. Lastly, he contended that the order of cancelling the penalty....
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....ssing Officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act is satisfied that any person has concealed the particulars of his income or furnished inaccurate particulars of such income, may direct that such persons shall pay by way of penalty. The language of the above section clearly provides that the initiation of the proceedings for penalty should be made in the course of proceedings under this Act and the satisfaction of the Assessing Officer should also be discernable from such proceedings. However in this case, there is nothing in the order dated 6.01.2006. The Assessing Officer could have initiated the fresh penalty proceedings after receipt of the order of the Tribunal, but Assessin....