<h1>Finance Ministry Clarifies Retrospective Amendment to Income-tax Act Section 271 on Penalty Proceedings for Income Concealment.</h1> The Ministry of Finance clarified the retrospective amendment to Section 271 of the Income-tax Act, proposed in the Finance Bill, 2008. This amendment addresses the ongoing dispute over whether assessing officers must record satisfaction before initiating penalty proceedings for income concealment. Historically, courts have differed on whether written satisfaction is required. The amendment, effective retrospectively, states that an assessment order directing penalty proceedings is deemed sufficient for satisfaction. This aims to resolve judicial conflicts and protect revenue interests in pending cases, while ensuring taxpayers can contest penalties on their merits. Assessing officers must still record satisfaction before imposing penalties, maintaining natural justice.