Recorded satisfaction in assessment order is necessary to validly initiate section 271E penalty proceedings for section 269T contravention.

Penalty proceedings under section 271E for alleged contravention of section 269T require recorded satisfaction in the assessment order under section 143(3). The Tribunal held that, where the assessment order contains no finding or even a whisper indicating initiation of such penalty, the proceedings are invalid and bad in law. Applying settled precedent and judicial discipline, it concluded that absence of recorded satisfaction vitiates the initiation itself, and the penalty challenge failed.

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Issues: Whether penalty proceedings under section 271E for alleged contravention of section 269T could be validly initiated in the absence of any satisfaction recorded in the assessment order under section 143(3).

Analysis: The assessment order contained no whisper or finding indicating that penalty proceedings under section 271E were to be initiated. The Tribunal applied the principle that, for valid initiation of such penalty proceedings, the assessment order must reflect the requisite satisfaction. In the absence of any such recording, the initiation of penalty proceedings was treated as illegal and bad in law. Reliance was placed on binding precedent to hold that judicial discipline required following the settled rule on satisfaction-based initiation.

Conclusion: The penalty proceedings under section 271E were held to be invalid for want of recorded satisfaction in the assessment order, and the Revenue's challenge failed.

Ratio Decidendi: Penalty under section 271E cannot be sustained unless the assessment order records satisfaction giving rise to initiation of such penalty proceedings; absent such satisfaction, the penalty initiation is vitiated.

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