2009 (10) TMI 583

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....1(1)(c), the same was qua "concealment of particulars of income". The Tribunal thereafter held as under: "6. We have heard the rival submissions and perused the material available on record. The case law relied upon before us has also been taken into consideration. On a careful consideration of the same, we are of the view that once the AO has initiated penalty proceedings in the assessment order on the basis of which jurisdiction can be said to have been acquired by him is on only count i.e., the count of filing of inaccurate particulars of his income and admittedly not for concealment or for that matter on both these counts. However, penalty instead has been imposed on the count of concealment of particulars of assessee's income. In thes....

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....action and that will be proper satisfaction. Thus due, to retrospective amendment, the law to be applied is the law as per amended provision of s. 271(1B) inserted with retrospective effect. Not applying the retrospectively amended law will amount to a mistake apparent on record. He accordingly urged that for correct application of law as amended with retrospective effect be applied and for this purpose the order of Tribunal dt. 17th July, 2007 be recalled and decided again. The learned counsel for the assessee applicant Shri Anurag Sinha on the other hand, submitted that the Tribunal has not decided the matter on the ground that no satisfaction was arrived at. He submitted that though the Tribunal noted that satisfaction is arrived at, th....

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....levied for another reason. While so holding the Tribunal relied upon the decision of Hon'ble Supreme Court in the case of Dilip N. Shroff. Thus the Tribunal had not cancelled the penalty on the ground that there is no satisfaction recorded in the assessment order. The retrospective amendment was by insertion of sub-s. (1B) in s. 271 which is extracted hereunder: "(1B) 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 cl. (c) of sub-s. (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the AO for initiation of the penalty proceedi....