Held that while levying penalty for concealment, the AO has to record satisfaction and thereafter come to a finding in respect of one of the limbs which is specified u/s 271(1)(c) of the Act, namely, whether the assessee has concealed the income or furnished inaccurate particular of income. No such specific finding was given by the AO in the present case, which shows non application of mind by the AO, thus vitiating imposition of penalty. (AY. 2006-07)
Proform Interiors Pvt. Ltd. v. ACIT (2022) 94 ITR 63 (SN) (Delhi) (Trib.)
S. 271(1)(c) : Penalty-Concealment-Non-striking off of relevant limb-lack of recording proper satisfaction by AO whether there was concealment of income or furnishing of inaccurate particulars of income by the Assessee-Non application of mind by AO-Levy of penalty is not valid. [S. 274]