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TMI Blog2013 (1) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... itiation of penalty proceedings under Clause (c) of sub-section (1) of Section 271, the same shall be deemed to be satisfaction recorded by the A.O. for initiation of penalty proceedings – Remand back to Tribunal - ITA No. 832 of 2008 (O&M) - - - Dated:- 1-8-2012 - MR. AJAY KUMAR MITTAL. AND MR. G.S. SANDHAWALIA. JJ. PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1. Delay in refiling the appeal is condoned. 2. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 30.3.2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench A , Chandigarh (hereinafter referred to as the Tribunal) in ITA No. 162/CH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated. The Assessing Officer levied penalty of Rs. 5,00,000/- under Section 271(1)(c) of the Act vide order dated 15.9.2004 (Annexure A-2) against which the assessee approached the Commissioner of Income Tax (Appeals) [in short the CIT(A) ] who vide order dated 23.12.2005 (Annexure A-3) confirmed the penalty of Rs. 5,00,000/-. Against the order of the CIT(A), the assessee filed appeal before the Tribunal who vide order dated 30.3.2007 (Annexure A-4) deleted the penalty holding that the penalty proceedings had been initiated by the Assessing Officer without recording his 'satisfaction' in the assessment order in respect of the alleged concealment and furnishing of inaccurate particulars of income. Hence, the present appeal by the revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Assessing Officer for initiation of the penalty proceedings under the said clause (c). 7. The said provision has been introduced retrospectively from 1.4.1989. A plain reading of the aforesaid provision clearly spells out that wherever an Assessing Officer during the course of assessment or reassessment proceedings records a direction for initiation of penalty proceedings under Clause (c) of sub-section (1) of Section 271 of the Act, the same shall be deemed to be satisfaction recorded by the Assessing Officer for initiation of penalty proceedings. Further, this Court in Pearey Lal and Sons (EP) Ltd's case (supra) dealing with a similar issue had noticed as under:- We are in agreement with above observations. Whether sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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