COMMISSIONER OF INCOME TAX Vs. HOLIDAY AIR SERVICES (P) LTD.
LAWS(DLH)-2007-9-410
HIGH COURT OF DELHI
Decided on September 14,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Holiday Air Services (P) Ltd. Respondents

JUDGEMENT

- (1.) DESPITE service, no one appears for the respondent.
(2.) THE Income -tax Appellate Tribunal ('Tribunal'), Delhi Bench 'C', Delhi, in ITA No. 2659/Del/2001 for the asst. yr. 1992 - 93.
(3.) BY the impugned order, the Tribunal allowed the appeal filed by the assessee challenging the levy of penalty under s. 271(1)(c) of the Act. The penalty was set aside by the Tribunal on the ground that the AO had not recorded any satisfaction in the assessment order that there was either concealment or inaccurate particulars furnished by the assessee. Ms. Prem Lata Bansal, learned senior standing counsel for the Revenue, submits that in CIT vs. Ram Commercial Enterprises Ltd. (2001) 167 CTR (Del) 321 : (2000) 246 ITR 568 (Del), this Court has taken the view that if the AO does not record his satisfaction in the assessment order that penalty proceedings should be initiated against the assessee, the subsequent order levying penalty would be bad in law. However, she says that another Bench of this Court has in CIT vs. Indus Valley Promoters Ltd. (2006) 204 CTR (Del) 149 : (2006) 155 Taxman 223 (Del) referred the following substantial question of law to a larger Bench which according to the referring Bench was not considered in Ram Commercial Enterprises Ltd.'s case (supra) : "'Whether satisfaction of the officer initiating the proceedings under s. 271 of the IT Act can be said to have been recorded even in cases where satisfaction is not recorded in specific terms but is otherwise discernible from the order passed by the authority -;


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