Penalty cannot be levied on charges not forming part of penalty proceeding initiation 

Babasaheb Kondiram Dongre Vs ITO (ITAT Pune) The issue in the present appeal relates to the levy of penalty of Rs.64,662/- u/s 271(1)(c) made on the addition of Rs.3,42,500/- on account of unexplained cash deposits in savings bank account of the appellant. On perusal of the assessment order, it would reveal that the Assessing Officer had initiated penalty proceedings for both the limbs i.e. concealment of particulars of income as well as furnishing of inaccurate particulars of income, however, the penalty was levied only holding that the assessee is guilty of concealing of particulars of incom...