1975 (12) TMI 78

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....of Income-tax (Central), Range-I, has stated as follows : " Whereas the Income-tax Officer, Central Circle-V, Calcutta, has under subsection (2) of section 274 of the Income-tax Act, 1961, referred your case to me in connection with the penalty proceedings under clause (c) of sub-section (1) of section 271 and whereas it appears to me that you have concealed the particulars of your income or, deliberately furnished inaccurate particulars of such income for the assessment year 1964-65. You are hereby requested to appear before me at 11.30 A.M. on February, 24, 1971, and show cause why an order imposing a penalty on you should not be made under section 271(1)(c) of the said Act. If you do not wish to avail yourself of this opportunity of ....

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.... are hereby informed that the case for levy of a penalty u/s (under clause (c) of sub-section (1) of section 271) is being referred by me to the Inspecting Assistant Commissioner of Income-tax, Range-I(c), Calcutta. Further proceedings in regard to the levy of a penalty will take place before the said Inspecting Assistant Commissioner of Income-tax as provided in sub-section (2) of section 274. It is manifest that the Income-tax Officer was satisfied during the course of the assessment proceeding about the need for imposition of penalty. The assessment order records that fact. What is required under the Act is satisfaction before the conclusion of the proceeding and not issue of any notice or initiation of any step for imposing penalty. Rel....