2007 (9) TMI 676 - HC - Income Tax

Summary

Issues involved: Appeal against order of Income Tax Appellate Tribunal setting aside penalty under Section 271(1)(c) of the Income Tax Act, 1961.

The High Court, Delhi, heard an appeal under Section 260(A) of the Income Tax Act, 1961, challenging the Tribunal's order setting aside a penalty imposed under Section 271(1)(c) for the assessment year 2001-02. The Tribunal had allowed the Assessee's appeal, contending that the Assessing Officer did not record satisfaction in the assessment order regarding concealment or inaccurate particulars. The Revenue cited precedent but acknowledged a pending question before a larger Bench regarding the necessity of explicit satisfaction in such cases. The Court noted Supreme Court approval of a previous decision and the potential impact of the larger Bench's ruling. Upon examining the assessment order, the Court found the Assessing Officer's remarks insufficient to meet the legal requirements and concluded that no satisfaction for initiating penalty proceedings was evident. Consequently, the Court dismissed the appeal, stating that no substantial question of law arose in this matter.