TMI Blog2010 (3) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... sfaction being recorded by the learned CIT(A) as to why penalty under s. 271(1)(c) needs to be imposed on the assessee. Pertinently, the very opening portion of s. 271(1) of the Act reads that : 'If the CIT(A).in the course of any proceedings under this Act, is satisfied that any person .' (Emphasis, italicized in print, supplied) From above, it is evident that before directing that a penalty under s. 271(1) is required to be imposed on the assessee, the first requirement is that the CIT(A) is satisfied in this regard. Further, as per the cl. (c) of s. 271(1), the satisfaction has to be with regard to either the assessee having concealed the particulars of his income or the assessee having furnished inaccurate particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iar [1962] 44 ITR 739 (SC); (3)CIT v. Munish Iron Store [2004] 186 CTR (Punj. Har.) 159 : [2003] 263 ITR 484 (Punj. Har.); (4) CIT v. Ram Commercial Enterprises Ltd. [2001] 167 CTR (Delhi) 321 : [2000] 246 ITR 568 (Delhi); (5) Diwan Enterprises v. CIT [2001] 167 CTR (Delhi) 324 : [2000] 246 ITR 571 (Delhi); (6) CIT v. Super Metal Re-rollers (P.) Ltd.[2003] 185 CTR (Delhi) 349 : [2004] 265 ITR 82 (Delhi); CIT v. Dewan Kunj Lal Kanhaiya Lal [1986] 51 CTR (Pat.) 238; [1987] 164 ITR 284 (Pat.). Further, this Bench of the Tribunal has also reiterated this position of law in the case of Ram Nath Chadha v. Asstt. CIT [2004] 82 TTJ (Asr.) 331.The case law, cited by the learned counsel for the assessee, i.e.,Chaman Lal (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty. In support, as many as nine case laws were relied on. 5. The Department now contends that s. 271(1B) of the Act, has been inserted in the Act by the Finance Act, 2008 after passing of our aforesaid order dt. 4th May, 2007, with retrospective effect from 1st April, 1989, makes the observations in our said order to amount to a mistake apparent from the record, in as much as per this section, the satisfaction for initiating the penalty proceedings is to be that of the AO. 6. Sec. 271(1B) reads as follows : Where any amount is added or disallowed in computing the total income or loss of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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