2014 (6) TMI 50

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....263 of the Income Tax Act on 29.06.2010 seeking to bring to tax inter alia a sum of Rs. 90,60,705/- as short term capital gain. Besides this, other issues too were decided; the matter was sent back to the AO with the direction 'to pass the consequential order as per direction'. The subsequent order, which purported to give effect to the revisional order, sought to initiate penalty for the first time. Thereafter, penalty was imposed on 28.09.2011. This was challenged by the respondent/assessee on the ground that since the CIT in exercise of its revisional powers did not record the satisfaction as required by Section 271(1)(c), the AO could not on its own accord, initiate penalty proceedings and impose penalty. On the merits, the CIT(A) as we....

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....position of penalty, was also amended and a new Sub-Section (1A) was introduced. The same read as follows: - '(1A) In a case where the relevant assessment or other order is the subject-matter of an appeal to the Commissioner (Appeals) under section 246 or section 246A or an appeal to the Appellate Tribunal under section 253 or an appeal to the High Court under section 260A or an appeal to the Supreme Court under section 261 or revision under section 263 or section 264 and an order imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty is passed before the order of the Commissioner (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court is received by the Chief ....