2007 (9) TMI 656

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....J. - The revenue is aggrieved by an order dated 13-1-2006 passed by the Income-tax Appellate Tribunal ('Tribunal') Delhi Bench 'E', New Delhi in ITA No. 778/D/2000 relevant for the assessment year 1994-95. 2. The issue raised in this appeal under section 260A of the Income-tax Act, 1961 is very narrow and is being decided, effectively, on a demurrer as it were. In CIT v. Ram Commercial Enter....

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....terprises Ltd.'s case (supra) and other several decisions to the same effect has been accepted as correct, but the alternative contention raised by learned counsel for the Revenue in Indus Valley Promoters Ltd.'s case (supra) was referred to a larger Bench. The substantial question of law based on the alternative submission that has been referred to a larger Bench of three Judges reads as follows:....

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....der. 6. We have heard detailed arguments of both the learned counsels. Without expressing any view on the issue pending consideration before the larger Bench, for the purposes of the present case, we proceed on the basis that in law the satisfaction of the Assessing Officer may be discerned from the order of assessment making the initiation of penalty proceedings valid. 7. Proceeding on this....

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....is Act, is satisfied that any person-  (a)& (b)******  (c)has concealed the particulars of his income or furnished inaccurate particulars of such income, or  (d)****** he may direct that such person shall pay by way of a penalty. . . ." There can be no doubt from a reading of the above provision that the Assessing Officer has to be satisfied th....