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2017 (3) TMI 1567 - ITAT MUMBAIPenalty u/s 271(1)(c) - Commissioner's power u/s 263 to direct the Assessing Officer to initiate penalty proceedings u/s 271(1)(c) - CIT-A passed order u/s 263 holding that the omission on the part of the Assessing Officer to initiate penalty proceedings during the course of assessment has rendered the assessment order erroneous and prejudicial to the interest of the revenue - Held that:- There are divergent views of the High Courts on the subject. Therefore, following the order of the Hon’ble Supreme Court in the case of CIT Vs. Vegetable Products [1973 (1) TMI 1 - SUPREME Court] when two views are possible, the view in favour of the Assessee is to be followed. Therefore CIT v. Paramanand M Patel [2005 (7) TMI 72 - GUJARAT High Court] and in the case of CIT v. Subhash Kumar Jain [2010 (9) TMI 772 - Punjab and Haryana High Court] we set aside the order of the Commissioner passed u/s 263 in directing the Assessing Officer to initiate penalty proceedings u/s 271(1)(c) of the Act.
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