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TMI Blog1998 (7) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessee under sections 271(1)(a) and 273(1)(b) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to the benefit of the amnesty scheme ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that satisfaction of the Income-tax Officer was not there for the penalty proceedings ?" Returns for all these years became due on July 31, of each assessment year. The assessee had filed the returns for the consecutive assessment years 1983-84 to 1985-86 on February 2 5, 1987, and return for the assessment year 1986-87 was filed on March 6, 1987. The Assessing Officer took the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no proceedings were taken up for concealment under section 271(1)(c) of the Act and, therefore, the returns filed for all the years should be held to have been filed voluntarily and in good faith, was not accepted by the Assessing Officer. On appeal, the Commissioner of Income-tax (Appeals) concurred with the Assessing Officer that the assessee was not entitled to the benefit of the amnesty scheme, inasmuch as the returns were not filed voluntarily and in good faith making true and full disclosure. He also rejected the contention of the assessee that no satisfaction was recorded by the Assessing Officer to initiate penalty proceedings under sections 271(1)(a) and 273(1)(b) of the Act and, therefore, the penalties levied by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were conducted in the case of the assessee's husband and the departmental representative's contention was that voluntariness was absent in the filing of the returns by the assessee. But the Kerala High Court in the case of A. V Joy, Alukkas Jewellery v. CIT [1990] 185 ITR 638, held that merely because the returns were filed after the search, they will not cease to be a voluntary or a bona fide disclosure. In these circumstances, we hold that the immunity under the amnesty scheme is clearly available to the assessee and the penalties are not at all leviable." On the count of satisfaction, the Appellate Tribunal held as under "In this case, the Assessing Officer has not recorded his satisfaction in the assessment orders about the initiatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfaction, as required under the law, was recorded by the Assessing Officer to initiate the penalties under sections 271(1)(a) and 273(1)(b) of the Act. Admittedly, the penalty proceedings were not initiated in the assessment orders. It is not the case of the Revenue that penalty proceedings were initiated either in the order sheet or in the rest of the file relating to the assessment years under review. Learned senior standing counsel submits before us that notices bearing initials of the Assessing Officer were issued on the same day when the assessments were made and, therefore, it be assumed from them that the Assessing Officer had recorded the requisite satisfaction. The notices were issued on printed forms. The question for considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ports of the printed forms. The printed material of the notice refers to satisfaction of the Assessing Officer and, therefore, the submission of learned senior standing counsel is that the satisfaction was recorded on the same day when the assessments were made. It is not the day or the point of time of issuing notices which is relevant, but what is relevant is whether the satisfaction, if any, recorded by the Assessing Officer, preceded the issue of notice. The Revenue has miserably failed to establish that satisfaction preceded the issue of notice in these cases. We do not dispute the legal proposition that it is not necessary to record the satisfaction in the assessment order itself, but the duty of the Revenue is to show that the satisf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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