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TMI Blog2005 (1) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the Income-tax Appellate Tribunal, Delhi Bench. It is not necessary for us to state in greater detail the facts giving rise to the present appeal. Suffice it to note that the order under section 143(3)(i) of the Act was passed by the Assessing Officer and at the end of the said order he also issued demand notice and challan for imposition of penalty as assessed under section 271(1)(c) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties and perusing the other material on record, I find that these assessees deserve to succeed in their respective appeals. I noted that disallowing the claim of loss by passing order under section 143(3), the Assessing Officer has not recorded any satisfaction as contemplated under section 271(1)(c) for the purpose of levying penalty. The hon'ble Delhi High Court in the case of Diwan Ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosed all the particulars and only due to wrong advice the assessee treated the expense as revenue whereas they were of capital in nature. This is a case of change of opinion. As in the view of counsel for the assessee, the expenses claimed were revenue in nature, whereas in the opinion of the Assessing Officer, these expenses were capital in nature. As stated above that these assessees have di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of learned counsel appearing for the Department is misconceived. Their Lordships of the Supreme Court have repeatedly emphasised the word "satisfaction" and the satisfaction is not to be in the mind of the Assessing Officer but must be reflected from the record. It is a settled rule of law that the authorities performing quasi-judicial or judicial function must give reasons in support of its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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