1982 (8) TMI 127 - AT - Income Tax

Summary

The appeal was filed by the assessee against the order of the Commissioner of Income Tax under section 263 of the IT Act, 1961, stating that the assessment order was erroneous for not initiating penalty proceedings under section 271(1)(c). The Tribunal held that penalty proceedings can be initiated at any stage and not necessarily in the assessment order itself. Citing a judgment of the Delhi High Court, the Tribunal ruled in favor of the assessee, canceling the order of the Commissioner. The appeal was allowed.