DELHI HIGH COURT - Income Tax
Levy of penalty u/s 271(1)(c) after remand order - originally no penalty proceedings were initiated - Satisfaction not recorded by the CIT – Held that:- Tribunal was of the view that when the revisional order was made on 29.06.2010, the Commissioner did not record any satisfaction even though he was empowered to do so u/s 271(1)(c), as amended -This aspect assumes importance even though the Revenue endeavoured to urge that the increased amount brought to tax by virtue of the revisional power implied that penalty could also be imposed while giving effect to the revisional order – the contention cannot be accepted because the basic idea of clothing the Commissioner with the primary powers to initiate penalty u/s 271 (1) was precisely to cater to such situations - the initiation of penalty proceedings is based upon the satisfaction of one who is empowered to do so - it was open to the Commissioner to initiate the proceedings in exercise of its powers u/s 271 or even indicate that such power was available to the AO, while working out the revision effect - Not having done so, the AO could not have in the first instance, after remand, without any direction or indication in the revisional order initiate the penalty proceedings – as such no substantial question of law arises for consideration – Decided against Revenue.
Regards
Prarthana Jalan
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