High Court of Delhi

Commissioner of Income tax

v.

Holiday Air Services (P) Ltd.

MADAN B. LOKUR, AND DR. S. MURALIDHAR, JJ.

IT APPEAL NO. 1069 OF 2006

September 14, 2007

Section 271 (1)(c), read with section 260A, of the Income-tax Act, 1961 – Penalty – For concealment of income – Assessment year 1992-93-Whether where, in assessment order, Assessing Officer recorded in regard to penalty proceedings that penalty proceedings under section 271(1)(c) and 274 read with section 271 for non-compliance of statutory notices had been initiated separately, it did not satisfy requirement of section 271(1)(c) with regard to satisfaction of Assessing Officer that penalty proceedings should be initiated against assessee, as explained by same High Court in CIT v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 568/[2002] 122 Taxman 620 approved by Supreme Court in Dilip N. Shroff v. Jt CIT [2007] 291 ITR 519/161 Taxman 218 (SC) and T.Ashok Pai v. CIT [2007] 292 ITR 11/161 Taxman 340 – Held, yes – Whether, in view of above and in view of fact that no satisfaction of Assessing Officer that penalty proceedings were required to be initiated against assessee was discernible from detailed perusal of assessment order, no substantial question of law arose in instant appeal – Held, yes.