The Tribunal held that the Assessing Officer had not recorded his satisfaction for initiation of penalty proceedings, but merely stated that the penalty proceedings under section 274 read with section 271(1)(c) had been issued separately for concealment of income and furnishing of inaccurate particulars of such income. This was not sufficient and therefore, the penalty proceedings could not said to be validly initiated. Similarly, in the penalty order passed under section 271(1)(c) of the Act, the Assessing Officer had mentioned that it was a case of deliberate concealment of income by furnishing inaccurate particulars. This was not sufficient to levy the penalty in dispute. Therefore, the entire penalty proceedings stood vitiated, because it was not in accordance with law. The penalty imposed was to be deleted.( AY.2003-04)