2002 (12) TMI 75 - HC - Income Tax

This appeal under section 260A of the Income-tax Act 1961 has been filed against the impugned order of the Income-tax Appellate Tribunal dated August 31 2000. The case relates to penalty under section 273(2)(a) of the Act for allegedly furnishing a false estimate of advance tax. - Only one point has been pressed by learned counsel for the appellant. He submitted that before issuing notice for initiating penalty proceedings under section 273(2)(a) of the Act the Assessing Officer has not recorded his satisfaction. - it is the assessing authority who has to form his own opinion and record his satisfaction before initiating the penalty proceedings . - We are therefore of the opinion that although the Assessing Officer must have satisfaction as required under section 273 of the Act it is not necessary for him to record that satisfaction in writing before initiating penalty proceedings under section 273 of the Act.

Summary

The High Court of Allahabad dismissed an appeal against a penalty under section 273(2)(a) of the Income-tax Act, 1961, stating that the Assessing Officer is not required to record satisfaction in writing before initiating penalty proceedings under section 273. The decision was based on the interpretation of the Act and previous court rulings. (Case citation: 2002 (12) TMI 75 - ALLAHABAD High Court)