Penalty proceeding invalid if Assessment order nowhere states specific charge of alleged concealment and / or furnishing of inaccurate particulars of income

Advertisement M/S ABR Auto PVT. LTD. Vs ACIT (ITAT Delhi) After perusing the assessment order, we find that AO also did not record his satisfaction for initiation of penalty proceedings, because while passing the assessment order dated 30.12.2011 passed u/s. 143(3)(ii) of the Act, the AO has stated that “….. Penalty proceedings u/s. 271(1)(c) is being initiated separately for furnishing inaccurate particulars of income / concealment income…”, which is not sufficient and therefore, the penalty proceedings cannot be said to be validly initiated under such circumstances. Howeve...