COMMISSIONER OF INCOME TAX Vs. AMAZONE EXPORTS INC.
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX
Amazone Exports Inc.
Click here to view full judgement.
(1.) DESPITE service, no one appears for the Respondent.
(2.) INCOME -tax Appellate Tribunal ('Tribunal') Delhi Bench 'SMC', New Delhi, in ITA No.2041/Del/2005 for the asst. yr. 1998 -99.
(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
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. (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 order passed
by the authority -
She accordingly submits that this Court should await the decision of the larger Bench.;
Copyright © Regent Computronics Pvt.Ltd.