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Sec. 271(1)(c) of Income Tax Act, 1961—Penalty— Concealment penalty - It is a settled law that while levying penalty, the AO has to record clear satisfaction and thereafter come to a finding in respect of one of the limbs, which is specified under section 271(1)(c) and the first step is to record satisfaction while completing the assessment as to whether the assessee had furnished inaccurate particulars of income or concealed his income, thereafter, notice u/s 274 read with Section 271(1)(c) is to be issued to the assessee - Where initiation of penalty is one limb and the levy of penalty is on other limb, then in the absence of proper show cause notice to the assessee, there is no merit in levy of penalty, thus, the basic condition for levy of penalty has not been fulfilled and that the penalty order suffers from non-exercising of jurisdiction power and therefore penalty order cannot be upheld. - LEBBA CONSTRUCTION V/s ASSTT. CIT -  28 ITCD Online 034 (ITAT-PUNE)