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2017 (1) TMI 1508 - ITAT, PUNEPenalty levied under section 271(1)(c) - Held that:- The issue arising in the present appeal is in respect of Explanation 5 to section 271(1)(c) of the Act which was attracted in respect of searches conducted prior to 01.06.2007 and Explanation 5A to section 271(1)(c) of the Act is attracted to the searches carried out on or after 01.06.2007. But both the provisions deal with the cases of additional income offered pursuant to search action at the premises of assessee. As pointed out in the paras hereinabove, the additional income in the present case was offered after Survey action and consequently, there is no merit in the levy of penalty for concealment under Explanation 5 to section 271(1)(c) of the Act. Recording of satisfaction while initiating penalty proceedings against the assessee while completing assessment order - The perusal of assessment order passed under section 143(3) of the Act, dated 29.10.2007 reflects no satisfaction whatsoever recorded by the Assessing Officer while initiating penalty proceedings in the case of assessee. The satisfaction by the Assessing Officer is missing except for direction to issue notice under section 274 of the Act initiating penalty under section 271(1)(c) of the Act. In the absence of the same, the Assessing Officer is not empowered to initiate and complete penalty proceedings against the assessee. Accordingly, we hold so. The penalty proceedings for concealment are thus, not leviable even on this jurisdictional issue. - Decided in favour of assessee.
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