9911796707
TMI Blog2023 (5) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 (hereinafter referred to as 'the Act') passed by Income Tax Officer, Ward- Itanagar, dated 28/06/2019. 2. The sole ground raised by assessee in this appeal is in respect of penalty imposed u/s 271(1)(c) of Rs.2,08,48,278/-. Brief facts of the case are that assessee is a Govt. of Arunachal Pradesh enterprise engaged in the business of construction of houses for the police department and other government corporations which claimed exemption under section 10(26B) of the Act. Hon'ble Guwahati High Court vide order dated 14/02/2019 in ITA no. 231/2017 in the case of assessee for Assessment Year 2009-10 and 2010-11 dismissed the appeal of the assessee by disallowing the exemption claimed under section 10(26B) of the Act. 2.1. Assessee file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l prayed for admission of additional ground and its adjudication. Tribunal after conside ring the aforesaid ground and after hearing the ld. Re presentatives of the partie s, admitted the additional ground of appeal taken by the assessee for its adjudication. 3.2. Ld. Counsel for assessee invited attention of the Bench to the said assessment order to demonstrate that there is no recording of any satisfaction or even a direction to initiate penalty proceedings under section 271(1)(c). Without recording any satisfaction for initiation of impugned proceedings, the assessment was completed and there was no proceeding which was pending under the Act. Thereafter, ld. Assessing Officer issued a notice u/s 274 r.w.s. 271(1)(c) of the Act dt. 12/12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as received from the assessee." 4.2. Ld. Counsel also referred to provisions of Section 271(1) of the Act, and submitted that sub-section very categorically mentions about Assessing Officer having satisfaction "in the course of any proceedings under this Act" which in the present facts of the case, no proceeding was pending for the assessee. Relevant portion of the section is reproduced as under:- "271. (1) If the Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or Commissioner in the course of any proceedings under this Act, is satisfied that any person-" 4.3. Ld. Counsel also referred to the deeming provision of section 271(1B) to point out that "any direction for initiation of penalty proceedings under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs under Section 271 (c) would be initiated makes the initiation of such proceedings, untenable. ............ 15. Much emphasis is laid on the last words viz., or reduce it into writing and asserted that the satisfaction need not be in writing at all. However, they must be read in the context of entire sentence, and not in isolation. If so done, the conclusion would be that the nature of satisfaction need not be in writing, though the factum of satisfaction must be in writing. The Tribunal has taken the correct view of the matter and we are not inclined to interfere with the same." 5.1. He also placed reliance on the decision of Hon'ble Delhi High Court in the case CIT vs. Rampur Engineering Co. Ltd. & Ors. (2009) 309 ITR 143 (Del. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t facts available on record will have to be kept in view by the Tribunal in deciding the question as to whether the Assessing Officer has applied his mind to the question of concealment of income or furnishing of inaccurate particulars of any such income. On the other hand, learned counsel appearing for the assessees submitted that the satisfaction as to the assessee having concealed the particulars of his income or furnished inaccurate particulars of such income is to be arrived at by the Assessing Officer during the course of any proceedings under the Act, which would mean the assessment proceedings, without which the very jurisdiction to initiate the penalty proceeding is not conferred on the Assessing Officer by reference to clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;s case (supra) and we are in respectful agreement with the same. The reference is answered accordingly." 6. On a specific query to ld. Sr. D/R by the Bench on the recording of any satisfaction or any direction in the body of assessment order by the ld. AO, he sought time to review the records and make his submission. The case was re-fixed from 3rd April to 5th April 2023 on specific request of ld. Sr. D/R who fairly accepted that there is no recording of any satisfaction for initiation of penalty proceedings under section 271(1)(c), in the body of the assessment order. 6.1. On going through the assessment order, we note that nowhere has the ld. AO noted in the assessment order, his satisfaction that there was either concealment of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
