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TMI Blog2014 (11) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... UDGEMENT Per : N Kumar J : This appeal is preferred against the order passed by the Tribunal dismissing the appeal filed against the order of the first appellate authority who has set aside the penalty imposed by the assessing authority. 2. The assessing authority after framing the assessment order has observed in the said order that penalty proceedings under Section 271 (1) (c) of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue preferred an appeal to the Tribunal. The Tribunal was of the view an erroneous claim which was to become erroneous later cannot be subjected to penalty and, therefore, it dismissed the appeal. It is against the said order, the present appeal is filed. 4. When two fact finding authorities have recorded that there is no mala fide on the part of the assessee in putting forth claim for depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied about the existence of the said conditions which should be reflected in the assessment orders passed by them. In a given case, after appreciating the entire records, the officer passing the order may categorically state that he is satisfied that the assessee has concealed income. Once such a finding is recorded that is sufficient to initiate penalty proceedings. Assuming such a categoric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Commissioner."
5. Therefore, in view of the aforesaid judgment, in the absence of a specific direction to initiate penalty proceedings, the very initiation of the proceedings is bad.
6. For the aforesaid reasons, we do not see any merit in this appeal. The substantial question of law is answered in favour of the assessee and against the revenue.
Accordingly, the appeal is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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