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2019 (1) TMI 1908 - ITAT KOLKATALevy penalty u/s. 271AAB V/S levy penalty u/s. 271(1)(c) - assumption of jurisdiction to levy penalty u/s. 271(1)(c) - assessee objected to penalty proceedings u/s 271AAB since no search u/s. 132 of the Act happened - AO mentioned in the penalty order that he inadvertently issued notice u/s. 271AAB of the Act and then levied penalty u/s. 271(1)(c) - As per assessee no search u/s. 132 of the Act was conducted against him, the penalty u/s 271AAB is not attracted in the instant case - HELD THAT:- Here in this case, we have reproduced the satisfaction of AO in the assessment order which was for levy of penalty u/s. 271 AAB of the Act and in the assessment order, the AO initiated penalty u/s. 271AAB of the Act. AO without even initiating penalty u/s. 271(1)(c) of the Act in the assessment order itself, the imposition of penalty u/s. 271(1)(c) of the Act where in the assessment order AO adds any amount or disallowed while computing the total income or loss of an assessee in and the said order does not contains a direction for initiation of penalty proceedings under clause (c) of subsection (1), such an order of assessment or reassessment cannot be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under the said clause (c). We note that in the assessment order the AO has neither recorded satisfaction to levy penalty against the assessee u/s. 271(1)(c) of the Act nor has he initiated the penalty u/s. 271(1)(c) of the Act. Therefore, after recording satisfaction in assessment order to levy penalty u/s. 271AAB and initiation of penalty u/s. 271AAB of the Act, the AO does not have jurisdiction to levy penalty u/s. 271(1)(c) of the Act. We also rely on the Karnataka High Court decision in CIT Vs. MWP Ltd. [2013 (12) TMI 1214 - KARNATAKA HIGH COURT]
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