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2019 (12) TMI 871 - HC - Income TaxPenalty u/s 27(1)(c) - invocation of provisions of Section 263 - Proof of satisfaction of the Assessing Officer/Commissioner (Appeals)/ or Commissioner, recorded ‘in the course of any proceeding under this Act’ for the levy of penalty - HELD THAT:- The provisions of Section 271(1) of the Act call for the satisfaction of the Assessing Officer/Commissioner (Appeals)/ or Commissioner, recorded ‘in the course of any proceeding under this Act’ for the levy of penalty. Thus, while the Principle Commissioner or Commissioner could well initiate penalty under Section 271(1) if he proposed to effect modifications to the assessment itself, he cannot, in law substitute his satisfaction for that of the Assessing Officers’ for levying penalty in regard to the modifications to income effected in original assessment. This tantamounts to the Commissioner putting himself the shoes of the Assessing Officer who had passed the original order of assessment in 2016 and is impermissible in law. See Commissioner of Income Tax Vs. C.R.K.Swami [2001 (11) TMI 56 - MADRAS HIGH COURT] The order of the Tribunal holding that the addition to income was not justified, having become final, the Tribunal’s order holding that the revision of assessment by the Commissioner on the ground that penalty proceedings had not been initiated was unsustainable, in the circumstances, is an order which is required to be upheld.
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