Levy of penalties u/s 271(1)(c) of I.T. Act, 1961. - Income Tax - 430/CBDT

INSTRUCTION NO. 430/CBDT Dated: June 15, 1972 Section(s) Referred: 271(1)(c) Statute: Income - Tax Act, 1961 Reference is invited to Board's Instructions No. 241 (F. No. 272/169/70-ITJ) dated 30-11-1970/No. 259 (F. No. 272/169/70-ITJ) dated 5-1-1971 and to say that a larger Bench of the Calcutta High Court has since delivered judgment on 13-1-72 in the case of Mahabir Prasad Poddar Vs. I.T.O., B-Ward, Distt. 192) (Matter No. 137 of 1969). The Commissioner of Income-tax, West Bengal-I has been advised to forward copies of the judgment to all Commissioners/Addl. Commissioner of Income-tax if not already done. This judgment is in favour of the Department and holds that in cases of imposition of penalties u/s 271(1)(c) of the I.T. Act, 1961, no further satisfaction of the Inspecting Asst. Commissioner is necessary in the course of the assessment proceedings after the initial satisfaction by the I.T. Officer. The revised procedure recommended in the Board's above-noted Instructions need not therefore be followed hereafter and the procedure followed before the issue of the Instructions reverted to.