Section 271 of Income Tax Act, 1961—Penalty u/s 271(1)(c)— The only issue raised in this appeal is against the order of the CIT(A) confirming levy of penalty u/s 271(1)(c) levied by AO in respect to addition of bogus sundry creditors of 5,94,651/- and on the addition of agricultural income as income from other sources of 92,300/- and on addition of accrued interest on FD’s of 34,400/-.

Held that—ITAT find that no such satisfaction as contemplated u/s.271(1)(c) have been recorded by the Assessing Officer while completing the assessment that in which limbs, the issue is following. The Assessing Officer has simply mentioned that “penalty proceedings u/s.271(1)(c) are initiated separately”.

Respectfully following the decision of Hon’ble A.P. High Court in the case of V.V. Project and Investments P Ltd (supra) , I delete the penalty of Rs. 2,31,130/- levied by the Assessing Officer under section.271(1)(c) of the Act and allow the appeal of the assessee.[NATABAR NATH, GANDHI NAGAR, PO/DIST: KORAPUT. VERSUS ITO, JEYPORE WARD, JEYPORE] [2019] 12 ITCD Online (5) [ ITAT CUTTACK]