TMI Blog2017 (3) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed order u/s 263 cancelling the assessment order passed u/s 143(3) of the Act and directed the Assessing Officer to initiate penalty proceedings u/s 271(1)(c) of the Act which he omitted while passing the assessment order. The Ld. Counsel for the Assessee submits that the Assessing Officer while completing the assessment u/s 143(3) on 30.12.2011 disallowed depreciation claimed by the Assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer has discretion to initiate penalty proceedings or not and the Assessing Officer has taken a conscious decision not to initiate penalty proceedings and therefore assessment order cannot be said to be erroneous. Therefore, he submits that the Ld. Commissioner has no power to set aside the assessment order to initiate penalty proceedings. For this proposition he placed rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of assessment has rendered the assessment order erroneous and prejudicial to the interest of the revenue. He placed reliance on the decision of Allahabad High Court in the case of CIT Vs. Surendra Prasad Agarwal [275 ITR 113]. The Allahabad High Court held that omission of the Assessing Officer to initiate penalty proceedings in the course of assessment, rendered assessment order erroneo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e followed. Therefore, respectfully following the decision of the Gujarat High Court in the case of CIT Vs. Paramanand Patel (supra) and the decision of Punjab Haryana High Court in the case of CIT Vs. Subash Kumar Jain (supra) 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. 5. In the result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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