2009 (7) TMI 38 - HC - Income Tax

Constitutional Validity of New Provision 271(1B) - Initiation of Penalty Proceedings - Satisfaction of the AO - Retrospective Amendment by Finance Act, 2008 - Held that - Section 271(1B) of the Act is not violative of Article 14 of the Constitution. - The position of law both pre and post amendment is similar, in as much, the Assessing Officer will have to arrive at a prima facie satisfaction during the course of proceedings with regard to the assessee having concealed particulars of income or furnished inaccurate particulars, before he initiates penalty proceedings - Prima facie satisfaction of the Assessing Officer that the case may deserve the imposition of penalty should be discernible from the assessment order - new provision would not debar an assessee from furnishing evidence to rebut the prima facie satisfaction of the Assessing Officer; since penalty proceeding are not a continuation of assessment proceedings. - Due compliance would be required to be made in respect of the provisions of Section 274 and 275 of the Act. New provision held to be valid.