2003 (9) TMI 51

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....e Revenue under section 260A of the Income-tax Act, 1961, is directed against the order dated October 4, 2002, passed by the Income-tax Appellate Tribunal, Delhi Bench "SMC-II, New Delhi (for short "the Tribunal"), in I.T.A. No. 998/Delhi of 1998. By the impugned order the Tribunal has deleted the penalty levied on the respondent-assessee under section 271(1)(c) of the Act, in respect of the asses....

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.... had surrendered an income of Rs. 4.25 lakhs. Thus, the submission is that the satisfaction of the Assessing Officer, as contemplated in section 271(1)(c) of the Act was inherent in the queries raised by him during the course of the assessment proceedings. It is urged that the Assessing Officer had directed the issue of notice for levy of penalty under the said section after being satisfied that t....

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....n D.M. Manasvi v. CIT [1972] 86 ITR 557, 562 and CIT v. S.V. Angidi Chettiar [1962] 44 ITR 739, 745 has observed thus: "A bare reading of the provisions of section 271 and the law laid down by the Supreme Court makes it clear that it is the assessing authority which has to form its own opinion and record its satisfaction before initiating the penalty proceedings. Merely because the penalty proc....