TMI Blog2008 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ation in this appeal under Section 260A of the Income Tax Act, 1961 ('the Act') is whether the Assessing Officer had recorded his satisfaction for initiating penalty proceedings under Section 271(1)(c) of the Act. 3. Learned counsel for the Revenue accepted the fact that this Court has taken the view in Commissioner of Income Tax v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 571 (Delhi) that the Assessing Officer must record his satisfaction in specific terms for initiating penalty proceedings under Section 271(1)(c) of the Act. She also accepted the fact that the view taken by this Court in Ram Commercial Enterprises Ltd. has been approved by the Supreme Court in Dalip N. Shroff v. Joint Commissioner of Income Tax, [2007] 291 ITR 519 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is now settled that penalty proceedings are penal in nature. Section 271(1)(c) of the Act postulates penalty being imposed either for furnishing inaccurate particulars of income or for concealing the income. 9. There is nothing to suggest that the Assessing Officer had applied his mind to the question about which facet of Section 271(1)(c) of the Act is applicable to the case and for what act of omission or commission by the Assessee. Merely to say that the Assessee had adopted an illegal device to avoid his tax liability is neither here nor there. The Assessee had filed its returns and had disclosed all material facts of the case and had concealed nothing in its returns. If the Assessing Officer takes a view contrary to that express ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.850/2006 decided on 15 th September, 2007), Commissioner of Income Tax v. Smt. Santosh Sharma (ITA No.1088/2006 decided on 17 th September, 2007) and Commissioner of Income Tax v. O.P. Lohia (ITA No.1052/2007 decided on 1 st November, 2007). 13. Even though the law has been settled by this Court in a very large number of cases, apart from Ram Commercial Enterprises such as Diwan Enterprises v. Commercial of Income, [2000] 246 ITR 571 (Delhi) and Commissioner of Income Tax v. B.R. Sharma, [2005] 275 ITR 303, the Revenue is still filing these sort of appeals for no apparent reason. By this casual attitude of the Revenue, the Registry (apart from this Court) has been put under severe pressure in dealing with a large influx of appeals, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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