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2014 (11) TMI 808 - HC - Income TaxLevy of penalty u/s 273(a)(aa) when reassessment proceedings started - Whether the Tribunal was right in law in holding that penalty u/s 273(a) (aa) cannot be levied as it has been initiated in the reassessment proceedings – Held that:- The Tribunal rightly was of the view that the penalty proceedings u/s 273 can be initiated only during ‘regular assessment’ and as the penalty proceedings u/s 273 have been initiated in the reassessment stage which cannot be termed as ‘regular assessment’ - in Modi Industries Limited And Others Versus Commissioner of Income-Tax And Another [1995 (9) TMI 324 - SUPREME Court] the meaning of 'regular assessment' has been defined - once proceedings of penalty us 273(2)(a) or sec.273(2)(aa) have not been initiated in the regular assessment by AO, then penalty proceedings cannot be initiated in the reassessment proceedings and penalties are liable to be deleted - thus, this was reassessment and therefore the provisions of Section 273(2)(aa) will not be applicable in the reassessment proceedings – the order of the Tribunal us upheld – Decided against revenue.
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