The Honourable Tribunal while allowing the appeal of the Assessee held that, the AO had not made any enquiry to discredit the claim of loss and had accepted the plea of bargain of the assessee to be assessed at nil income instead of the declared loss. Plea of assessee was accepted without observing anything to the contrary on the condition laid by the assessee, but still the AO made an observation that penalty proceedings u/s.271(1)(c) were being initiated separately for concealment of income. At the same time there was no substance in the form of enquiry and evidence that there was a concealment of income. No such observations were made in the assessment order. Further held that when the notice issued was vague and ambiguous having not specified under which limb of s. 271(1)(c), the penalty notice had been issued, the penalty proceedings initiated not sustainable.(AY. 2015-16)