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TMI Blog2019 (9) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... we find support from the ratio laid down in the case of CIT Vs. Shri Samson Perinchery [ 2017 (1) TMI 1292 - BOMBAY HIGH COURT] AO had levied the penalty both for concealment of the particulars of income and furnished inaccurate particulars of income. AO thus failed to come to any conclusion as to which limb of the said section has not been fulfilled by the assessee. In the absence of the same, we find no merit in the order passed by the AO in this regard. For this, we place reliance on the decision of Pune Bench of the Tribunal in the case of Kanhaiyalal D. Jain Vs. ACIT [ 2016 (12) TMI 1238 - ITAT PUNE] Even on merits where the income has been estimated in the hands of the assessee by applying net profit rate, there is no merit in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erits also, the addition has been made in the hands of the assessee on estimation of net profit rate where the AO had applied the net profit rate @ 8% and the Tribunal vide its order dated 13.02.2019 has directed the application of net profit rate @ 6%. In such circumstances, he pointed out that no penalty is leviable for concealment u/s 271(1)(c) of the Act. In this regard, he placed reliance on the decision of Delhi Bench of the Tribunal in the case of Shri Vivek Jairath vs DCIT in ITA No.4103 4104/Del/2015 vide order dated 27.12.2018. 3. The Ld.DR for the Revenue on the other hand strongly placed reliance on the orders of the authorities below and also pointed out that the penalty proceedings have been initiated in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue which arises whether non-recording of such satisfaction is fatal to the levy of penalty proceedings u/s 271(1)(c) of the Act. 6. Penalty for concealment is leviable where the assessee had either concealed its income or furnished inaccurate particulars of income. The AO while completing the assessment has to record a satisfaction in this regard, in order to show cause the assessee as to which limb to section 271(1)(c) of the Act has not been satisfied by it. This is the basic condition of the aforesaid section. On perusal of the assessment order passed for the instant assessment year reflects no such satisfaction has been recorded. In the absence of the same, the assessee was not in a position to meet th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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