ADDL. CIT, NEW DELHI vs. M/S. PHI SEEDS PVT. LTD., HYDERABAD

The appeals of the Revenue are dismissed and both the Rule 27 application of the assessee are allowed for A

Bench: Shri Mahavir Singh & Shri Brajesh Kumar Singh

Section 271(1B) by Finance Act 2008 creates a deeming provision that where addition/disallowance is made, penalty proceedings shall be deemed to have been initiated. The ICAI publication on "Penalty u/s 271(1)(c): Initiation, Satisfaction & Levy clarifies this position. 5.2 The Hon'ble Allahabad High Court in ShyamBiri Works