TMI Blog2005 (1) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 271(1)(c) - held that it is mandatory to record satisfaction before drawing an inference for the purpose of levying penalty which completing the assessment under section 143(3). - The provisions of section 271(1)(c) are penal in nature thus must be strictly construed, the element of satisfaction should be apparent from the order itself. It is not for the courts to go into the mind of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d challan accordingly. Penalty proceedings under section 271(1)(c) are initiated separately. (Sd.) A. Joseph, Income-tax Officer Ward 17(3), New Delhi." Against this order an appeal was filed and the order was sustained by the appellate authority. However on a further appeal by the assessee the Income-tax Appellate Tribunal vide its order dated July 7, 2004 accepted the appeal and set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 246 ITR 568 (Delhi) has held that it is mandatory to record satisfaction before drawing an inference for the purpose of levying penalty which completing the assessment under section 143(3). I have seen the orders of the Assessing Officer passed under section 143(3) and found that no such satisfaction as contemplated under section 271(1)(c) have been recorded by the Assessing Officer as the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of furnishing inaccurate particulars from which it can be inferred that these assessees have concealed their income." Learned counsel appearing for the petitioner while relying upon CIT v. S.V. Angidi Chettiar [1962] 44 ITR 739 (SC) contended that it was not necessary for the authorities to record reasons of satisfaction before issuing the demand notice as the proceedings taken by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned for passing an order adverse to the interest of the assessee. Further more the provisions of section 271(1)(c) are penal in nature thus must be strictly construed, the element of satisfaction should be apparent from the order itself. It is not for the courts to go into the mind of the authorities or trace the reasons from the files of such authorities. The order ex facie suffers from the vic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
