Penalty – S. 271(1)(c) – Partially set aside proceedings
Last updated: 07 June 2008
Court :
Brief :
Original assessment proceedings are relevant to ascertain the recording of satisfaction – No reason in original assessment proceedings for levy of penalty – Penalty imposed liable to be cancelled – A.Ys. 1996-97 to 2001-02
Citation :
British Airways Plc. vs. DCIT (2008) 2 DTR 1 (Del); Order dated 23-11-2007
In the case of partially set aside assessments, only the original assessment proceedings are relevant to ascertain the recording of satisfaction of the AO. There being no reasons whatsoever given by the AO in the original assessment orders as to why, in his opinion, it was just and proper to initiate penalty proceedings u/s. 271(1)(c) or at least to show as to why he was satisfied that the assessee had concealed the particulars of his income or had furnished inaccurate particulars of such income, the requisite satisfaction for initiating penalty proceedings was not recorded by the AO, hence, penalties imposed and sustained by CIT(A) were liable to be cancelled.
Shefali Bajpai
Published in Income Tax
Views : 51
Comments
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
