2007 (11) TMI 660

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....ome-tax Appellate Tribunal ('Tribunal'), Delhi Bench 'H', New Delhi in ITA No. 4488/Delhi/2005 relevant for the assessment year 2002-03. 2. The Assessing Officer sought to initiate penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961 ('Act') by his assessment order dated 16th December, 2002 where at the foot of the order, he observed as under :- "Assessed at Rs. 39,5....

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....ficer had not recorded his satisfaction in the assessment order that penalty proceedings should be initiated against the assessee. 5. Allowing the appeal of the assessee, the Tribunal reversed the order of the CIT(A). The Tribunal followed the decision of this Court in CIT v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 5681 . It held that since there was no recording of satisfaction of the A....

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.... the officer initiating the proceedings under section 271 of the Income-tax Act can be said to have been recorded even in cases where satisfaction is not recorded in specific terms but is otherwise discernible from order passed by the authority?" (p. 227) 8. She accordingly submits that this Court should await the decision of the Larger Bench. 9. Assuming the Revenue were to succeed before t....

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....to find out whether the satisfaction of the Assessing Officer that penalty proceedings should be initiated against the assessee under section 271(1)(c) of the Act is discernible therefrom. 10. Having gone through the assessment order, we find that it is not possible to discern any satisfaction of the Assessing Officer that penalty proceedings must be initiated against the assessee under section....