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TMI Blog2017 (10) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... il u/s 143(3) of the Act. 2. The only issue in this appeal of the assessee is against the revision order of the CIT u/s. 263 of the Act holding the assessment order framed by the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the Revenue for not referring the property to the DVO u/s. 50C(2) of the Act and also for not initiating penalty proceedings u/s. 271(1)(c) of the Act. For this the assessee has raised following ground "- "1. Learned Principal Commissioner of Income Tax erred in passing a revisionary Order u/s 263 on the plea that order passed u/s 143(3) of the Act was erroneous and prejudicial to the interest of Revenue in as much as the Learned Assessing Officer has not referred valuation of Property to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wandi, it was noticed by the AO that the said sale has been made at Rs. 11,15,100/- whereas the valuation of this gala as per stamp duty authorities was at Rs. 32,27381/--. The AO applied the provisions of Section 50C of the IT Act resulting taxable LTCG at Rs. 21,26,505/-.The AO has not initiated penalty proceedings u/s 271(1)( c ) of the IT Act against the above addition of long term capital gain." 4. The CIT after discussing the facts and legal position, finally noted that the matter should have been referred to the DVO u/s. 50C(2) and that the Assessing Officer also failed to initiate penalty proceedings u/s. 271(1)(c) of the Act against the assessee for furnishing inaccurate particulars of income. Aggrieved with the revision order, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o whether penalty is imposable or not. What is the meaning of the terms 'satisfied' and 'satisfaction'. One may usefully refer to the legal meaning given to the aforesaid expression : "(i )'Satisfied:'... The phrase 'is satisfied' means, in my view simply 'makes up its mind'; the court on the evidence comes to a conclusion which, in conjunction with other conclusions, will lead to the judicial decision.... New Zealand [The Marriage Act, 1955, section 15(2) provides (in relation to applications for leave to marry within the degrees of affinity) that the court must be 'satisfied' of certain circumstances] 'the best opinion I can form is that on such an application as this the evidence must enable the judge to feel what Dixon J [in Brignis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mind not troubled by doubt or, to adapt the language of Smith J.' a mind which has reached a clear conclusion-See Angland v. Payne [1944] NZLR 610 (CA) at page 626 : Jiten & Co. v. STO [1977] 39 STC 308 (Delhi); [1977] Tax LR 1921 (Delhi) at pages 1923-24. [Source : Law Lexicon : Legal Dictionary with Legal Maxims : Second Edition in Four Volumes page 2167). 20. The provision does not empower any other authority under the Act to record satisfaction : the only authorities empowered are the Assessing Officer, the Appellate Assistant Commissioner or the Commissioner (Appeals). Even if the Commissioner is superior to the aforesaid authorities in the administrative hierarchy, when it comes to discharging the functions in a quasi-judicial ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent does not have any independent existence and stands merged with the order of the appellate authority. Hence, to read section 263 as being applicable only in the case of an Assessing Officer for the purposes of initiation and levy of penalty and not being applicable to the appellate authority cannot be the legislative intent. To the contrary, the inherent indication under section 271(1) of the Act makes it clear that the Commissioner does not have any powers to direct either of the authorities, the Assessing Officer or the appellate authority, to initiate and levy penalty. The section requires the Assessing Officer or the appellate authority to be satisfied in the course of 'any proceedings'. This means, any proceedings before either of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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