TMI Blog2017 (10) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT cannot ask for revision in the price for the reason that in any eventuality the AO has to adopt either Stamp Duty Valuation or the value estimated by the DVO u/s 50C(2) of the Act, which is lower price. It means that the assessment order is neither prejudicial or nor erroneous. Secondly, whether the CIT u/s. 263 of the Act can direct the Assessing Officer to initiate penalty proceedings u/s. 271(1)(c) of the Act, this issue is clearly covered by the decisions of Hon’ble Gujarat High Court in the case of CIT vs. Parmanand M Patel (2005 (7) TMI 72 - GUJARAT High Court) and Sterling Construction and Investments vs. ACIT(Inv) (2015 (4) TMI 838 - BOMBAY HIGH COURT) as held the inherent indication under section 271(1) of the Act makes it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... framed by the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the Revenue for not referring the property to the DVO u/s. 50C(2) of the Act and also for not initiating penalty proceedings u/s. 271(1)(c) of the Act. For this the assessee has raised following ground - 1. Learned Principal Commissioner of Income Tax erred in passing a revisionary Order u/s 263 on the plea that order passed u/s 143(3) of the Act was erroneous and prejudicial to the interest of Revenue in as much as the Learned Assessing Officer has not referred valuation of Property to the Valuation Officer u/s 50C(2) and also not initiated Penalty Proceedings u/s 271(1)(c), thereby cancelling the said Order and directing the Learned Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities was at ₹ 32,27381/--. The AO applied the provisions of Section 50C of the IT Act resulting taxable LTCG at ₹ 21,26,505/-.The AO has not initiated penalty proceedings u/s 271(1)( c ) of the IT Act against the above addition of long term capital gain. 4. The CIT after discussing the facts and legal position, finally noted that the matter should have been referred to the DVO u/s. 50C(2) and that the Assessing Officer also failed to initiate penalty proceedings u/s. 271(1)(c) of the Act against the assessee for furnishing inaccurate particulars of income. Aggrieved with the revision order, the assessee is in appeal before the Tribunal. 5. We have heard the rival contentions and gone through the facts and circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efer to the legal meaning given to the aforesaid expression : (i ) Satisfied: ... The phrase is satisfied means, in my view simply makes up its mind ; the court on the evidence comes to a conclusion which, in conjunction with other conclusions, will lead to the judicial decision.... New Zealand [The Marriage Act, 1955, section 15(2) provides (in relation to applications for leave to marry within the degrees of affinity) that the court must be satisfied of certain circumstances] the best opinion I can form is that on such an application as this the evidence must enable the judge to feel what Dixon J [in Brignishaw v. Briginshaw [1938] 60 CLR 336] defined as an actual persuasion . That means a mind not troubled by doubt or, to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gland v. Payne [1944] NZLR 610 (CA) at page 626 : Jiten Co. v. STO [1977] 39 STC 308 (Delhi); [1977] Tax LR 1921 (Delhi) at pages 1923-24. [Source : Law Lexicon : Legal Dictionary with Legal Maxims : Second Edition in Four Volumes page 2167). 20. The provision does not empower any other authority under the Act to record satisfaction : the only authorities empowered are the Assessing Officer, the Appellate Assistant Commissioner or the Commissioner (Appeals). Even if the Commissioner is superior to the aforesaid authorities in the administrative hierarchy, when it comes to discharging the functions in a quasi-judicial capacity, one has to proceed strictly in accordance with the requirement of the provision. The Commissioner is not em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read section 263 as being applicable only in the case of an Assessing Officer for the purposes of initiation and levy of penalty and not being applicable to the appellate authority cannot be the legislative intent. To the contrary, the inherent indication under section 271(1) of the Act makes it clear that the Commissioner does not have any powers to direct either of the authorities, the Assessing Officer or the appellate authority, to initiate and levy penalty. The section requires the Assessing Officer or the appellate authority to be satisfied in the course of any proceedings . This means, any proceedings before either of the specified authorities. The Commissioner cannot create proceedings. If he is not permitted to direct the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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