TMI Blog2014 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... hing the Commissioner with the primary powers to initiate penalty u/s 271 (1) was precisely to cater to such situations - the initiation of penalty proceedings is based upon the satisfaction of one who is empowered to do so - it was open to the Commissioner to initiate the proceedings in exercise of its powers u/s 271 or even indicate that such power was available to the AO, while working out the revision effect - Not having done so, the AO could not have in the first instance, after remand, without any direction or indication in the revisional order initiate the penalty proceedings – as such no substantial question of law arises for consideration – Decided against Revenue. - ITA 541/2013 - - - Dated:- 27-5-2014 - S. Ravindra Bhat And V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Benches. Learned counsel for the Revenue urged that the impugned order suffers from infirmity on both counts. It is argued that, given the introduction of Section 275 (1A) read with Section 271(1)(c), the course of action adopted by the AO who merely gave effect to the enhanced amount brought to tax and, consequently, imposed penalty, was justified. Secondly, it was urged that the view with respect to short term capital gain could not be said to have been a bona fide one since the decisions of the various Tribunals were not prevailing, as on the date of the filing of the returns. This Court has considered the submissions. After amendment of Section 271(1)(c), which originally mentioned that in the event of the AO or Commissioner/Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of assessment as revised by giving effect to such order of the Commissioner (Appeals) or, the Appellate Tribunal or the High Court, or the Supreme Court or order of revision under section 263 or section 264 The ruling of the Tribunal in this case - unexceptionable on the facts as established - was that when the revisional order was made on 29.06.2010, the Commissioner did not record any satisfaction even though he was empowered to do so under Section 271(1)(c), as amended. This aspect assumes importance even though counsel for the Revenue endeavoured to urge that the increased amount brought to tax by virtue of the revisional power implied that penalty could also be imposed while giving effect to the revisional order. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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