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2023 (5) TMI 352 - ITAT PUNEPenalty u/s 271(1)(c) - satisfaction as recorded for under-reporting or mis-reporting of the income by the assessee - HELD THAT:- AO in the course of reassessment proceedings has recorded his satisfaction for ‘under reporting / mis-reporting’ of income and de-facto initiated penalty proceedings u/s 271(1)(c) of Act, this per-se sufficient to demonstrate his non-application of mind while recording satisfaction vis-à-vis initiation of penal proceedings. We are of the considered view that the necessity for prima facie satisfaction triggering initiation of penal proceedings continues to be a jurisdictional fact and same should discernible from the body of assessment order, which in the present case a miss, consequently we have no hesitation in holding the very basis of initiation of penal proceedings u/s 271(1)(c) suffers from infirmity hence bad in law and deserves to be quashed in the light of law laid by the Hon’ble Apex Court in “Dilip N Shroff Vs JCIT” [2007 (5) TMI 198 - SUPREME COURT] - Appeal of assessee allowed.
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