TMI Blog2004 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... non-initiation of penalty proceeding by the assessing authority in the course of assessment proceedings, also renders the order erroneous and prejudicial to the interests of the Revenue and, therefore, can be the subject-matter of revision under section 263 – Thus we answer the question of law referred to us in the negative, i.e., in favour of the Revenue and against the assessee. - - - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1980-81. The relevant previous year ended on September 30, 1979. For the assessment year in question, the Income-tax Officer assessed the income of the respondent at Rs. 3,78,900. He also allowed the depreciation as per annexure to the assessment order. The Commissioner of Income-tax called for and examined the records under section 263 of the Act. He was of the opinion that the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. J.K. D Costa [1982] 133 ITR 7 as referred to by the assessee, the Commissioner of Income-tax cannot set aside the assessment order under section 263 merely on the ground that the Income-tax Officer had not initiated the penalty proceedings for the relevant assessment year but that does not bar the Commissioner of Income-tax setting aside the impugned order of the Income-tax Officer, on other r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of the respondent. Recently this court had the occasion to consider in great detail the decision of the Delhi High Court in the case of Addl. CIT v. J. K. D Costa [1982] 133 ITR 7 and other cases in the Income-tax Reference No. 148 of 1984, CIT v. Surendra Prasad Agrawal [2005] 275 ITR 113 (All), decided on September 1, 2004, and this court has held that non-initiation of penalty proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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