TMI Blog2014 (7) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T. Vs. Ram Commercial Enterprises Ltd. [1998 (10) TMI 13 - DELHI High Court] - thus, no penalty is levied u/s 271B of the Act when AO failed to record its satisfaction in the assessment order pertaining to it – Decided against Revenue. - Income Tax Appeal No. - 62 of 2000 - - - Dated:- 25-7-2014 - Hon'ble Tarun Agarwala And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : Shambhu Chopra, A. Kumar, A. N. Mahajan,B. Agarwal,G. Krishna For the Respondent : Amit Shukla, S. K. Garg ORDER (Delivered by Dr. Satish Chandra,J.) The present appeal is filed by the department against the order dated 20.08.1999, passed by the Income Tax Appellate Tribunal, Allahabad in I.T.A. No.403(Alld.) for the assessment year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 imposed by the Assessing Officer and confirmed in the first appeal by the Commissioner of Income Tax Act (Appeals)? The brief facts of the case are that for the assessment year under consideration, the assessee had filed its return. The A.O. found that the audit report under Section 44AB was not obtained well on time so he levied the penalty which was upheld by the First Appellate Authority. However, the Tribunal has cancelled the penalty. Not being satisfied the department has filed the present appeal. With this background, heard Sri Shambhu Chopra, learned counsel for the appellant-department. He submits that time to time extension was granted for filing the return alongwith the tax audit report, but it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is the assessing authority who has to form his own opinion and record his satisfaction before initiating the penalty proceedings. Merely because the penalty proceedings have been initiated it cannot be assumed that such a satisfaction was arrived at. Further in the case of C.I.T. vs. Auto Lamps Ltd. (2005) 278 ITR 32, it was observed that:- without even mentioning the essential ingredients which the Assessing Officer is obliged to record for initiation of penalty proceedings, the order was passed to initiate penalty proceedings in a routine manner, an apparent violation of the relevant provisions. The Assessing Officer failed to record the requisite satisfaction in consonance with the settled principles of law. Therefore, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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