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TMI Blog2020 (3) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 271(1) of the Act at the time of initiation as well as at the time of levy of penalty. In view of the above deliberation on this issue, without going into the merits of the case, we set-aside the order of the CIT(A) and direct the Assessing Officer to delete the entire penalty imposed by him. Accordingly, the grounds raised by the assessee are allowed on legal issue. - ITA Nos.142 to 144/PUN/2018 - - - Dated:- 5-3-2020 - Shri D. Karunakara Rao, Accountant Member And Shri S.S. Viswanethra Ravi, Judicial Member For the Assessee : Shri M.K. Kulkarni For the Revenue : Shri S.P. Walimbe ORDER PER D. KARUNAKARA RAO, AM : The captioned appeals filed by the assessee are directed against consolidated order of Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same had also been made in the hands of the said Aman Bachat Mandal. 4) On the facts and circumstances of the case and in law the CIT(A) erred in confirming the penalty levied u/s 271(1)(c) by the AO in respect of addition sustained by the ITAT on account of deposits of one 'Aman Bachat Mandal', the same being its business income on which it is eligible for deduction u/s 80P(20(a)(i). 3. Briefly stated relevant facts are that the assessee is a Co-operative Society. Search and seizure action under section 132(1) of the Act was conducted in the case of assessee on 18.05.2005. Accordingly, in response to notice u/s 153A(a) of the Act, the assessee filed return of income declaring total income of ₹ 32,630/- on 24.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the penalty order, we find the following is the reasons for levy of penalty u/s 271(1)(c) of the Act :- 8 .I am satisfied that the assessee has concealed it income of ₹ 21,28,000/-, as well as, furnished inaccurate particulars of such income and rendered itself to penalty u/s 271(1)(c) of the Act, r.w. explanation to section 271(1)(c) .. 9. The default of concealment of income of ₹ 21,28,000/- as well as furnishing inaccurate particulars of such income has been established on record discussed precisely as above .. 8. The above extracts reveal that the Assessing Officer suffers from ambiguity in his mind while recording the satisfaction at the time of initiation of penalty proceedings u/s 271(1)(c) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de the order of the CIT(A) and direct the Assessing Officer to delete the entire penalty imposed by him. Accordingly, the grounds raised by the assessee are allowed on legal issue. 13. The facts and issues in other appeals in ITA Nos.143 144/PUN/2018 are similar to the facts and issues in ITA No.142/PUN/2018. Accordingly, our decision in ITA No.142/PUN/2018 shall apply mutatis mutandis to appeals in ITA Nos.143 144/PUN/2018. 14. Considering the relief granted on legal arguments to the assessee, we find that the adjudication of the grounds on merit becomes academic. 15. In the result, all the three appeals of assessee are allowed on legal grounds. Order pronounced in the open Court on 5th March, 2020. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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