2002 (12) TMI 75 - HC - Income Tax

Assessing Officer not required to record satisfaction in writing for penalty proceedings

The High Court of Allahabad dismissed an appeal against a penalty under section 273(2)(a) of the Income-tax Act, 1961, holding that the Assessing Officer ... This appeal under section 260A of the Income-tax Act, 1961, has been filed against the impugned order of the Income-tax Appellate Tribunal dated August 31, 2000. The case relates to penalty under section 273(2)(a) of the Act for allegedly furnishing a false estimate of advance tax. - Only one point has been pressed by learned counsel for the appellant. He submitted that before issuing notice for initiating penalty proceedings under section 273(2)(a) of the Act the Assessing Officer has not recorded his satisfaction. - 'it is the assessing authority who has to form his own opinion and record his satisfaction before initiating the penalty proceedings'. - We are, therefore, of the opinion that although the Assessing Officer must have satisfaction as required under section 273 of the Act, it is not necessary for him to record that satisfaction in writing before initiating penalty proceedings under section 273 of the Act. The High Court of Allahabad dismissed an appeal against a penalty under section 273(2)(a) of the Income-tax Act, 1961, stating that the Assessing Officer is not required to record satisfaction in writing before initiating penalty proceedings under section 273. The decision was based on the interpretation of the Act and previous court rulings. (Case citation: 2002 (12) TMI 75 - ALLAHABAD High Court)