2009 (7) TMI 1281

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....the relevant Income-tax Return filed by the assessee in the assessment year 1985-86, it had claimed a deduction of purported consultancy fee of Rs. 14,45,927 allegedly paid to M/s. Turcon India (P.) Ltd. It was claimed that this amount was paid as consultancy fee to the aforesaid firm for getting some contracts from NTPC. The Assessing Authority in his assessment order disallowed the aforesaid exp....

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....at before initiating proceedings under section 271 of the Income-tax Act, no satisfaction was recorded by the Assessing Authority in the assessment order about the fulfilment of requirements contained in section 271(1)(c) of the Act. 2. This matter along with certain other connected matters was referred to Full Bench for decision on the following questions of law:- "Whether satisfactio....

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....atisfaction about the existence of the conditions specified in clauses (a), (b) and (c ) before the proceedings are concluded. It is true that mere absence of the words "I am satisfied" may not be fatal but such a satisfaction must be spelt out from the order of Assessing Authority as to the concealment of income or deliberately furnishing inaccurate particulars. In the absence of a clear finding ....

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....eeping in view the aforesaid principle of law in mind. From the said order, we find that the Assessing Authority disallowed the aforesaid expense by observing that there was no corroborative evidence justifying the payment of the said amount of Rs. 13 lakhs for genuineness business cause. The order reflects that evidence which was sought to be given by the assessee in support of the aforesaid was ....