Section 271(1)(c) penalty not leviable when AO levied penalty under both charges

ITO Vs Shri Udaykumar D. Bhatt (ITAT Ahmedabad)

Section 271(1)(c) cast responsibility upon the AO to reach the clear finding with respect to levy of penalty under the specific charge and if the AO fails to do so then the penalty cannot be levied as such penalty order shall not be maintainable in the eyes of law.

In the light of the above stated discussion, we see the case on hand. It is noticed that the AO in the penalty order has levied the penalty under both the charges i.e. concealment of particulars of income and furnishing inaccurate particulars of income.

The relevant finding of the AO is extracted as under:

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