2003 (4) TMI 72

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..... ue has prayed for determination of the following question: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in law in cancelling the penalty of Rs. 4,38,172 levied under section 271(1)(c) of the Income-tax Act, 1961, holding that the penalty imposed was not valid and jurisdiction to impose the same was illegally assumed without recording .....

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..... rtner--Shri Roop Chand, was recorded on March 16, 1993. Upon this, books of account of the assessee were impounded under section 131 of the Income-tax Act, 1961 (for short, "the Act"). Thereafter, the assessee filed a revised return showing an income of Rs. 9,43,155. By an order dated March 30, 1994, the Assistant Commissioner of Income-tax, Circle II, Chandigarh, finalised the assessment under se .....

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..... turn was by itself sufficient for levy of penalty under section 271(1)(c) of the Act and the Tribunal committed a serious error by setting aside the orders of the assessing authority and the Commissioner of Income-tax (Appeals) only on the ground of non-recording of satisfaction by the Assessing Officer in the order of assessment. In our opinion, there is no merit in the argument of learned couns .....

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..... m the issue of notice under section 271(1)(c), the recording of legal and valid satisfaction cannot be assumed." The Tribunal then referred to the order of assessment passed by the Assessing Officer and observed: "It is clear from the above that not a word has been written about concealment of income. The Assessing Officer quietly accepted the revised return and the income disclosed therein. He .....

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..... urisdiction to impose the same was illegally assumed without recording a proper satisfaction. Penalty imposed is cancelled for the above reasons." In our opinion, the reasons assigned by the Tribunal for cancellation of the penalty are legally correct and the order passed by it does not give rise to any question of law, much less a substantial question of law requiring determination by this court .....

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