2001 (8) TMI 54

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..... 961, whether or not to initiate penalty proceedings. The word used in the section is "may". The Supreme Court in the case of Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26, has laid down that the penalty will not be imposed merely because it is lawful to do so where a discretion is given to the authority. In this case, admittedly, in relation to the assessment year 1960-61, the Commis .....

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..... been properly exercised. The order dropping the proceedings having been allowed to become final it was not open to the other officers who dealt with the files subsequently to initiate penalty proceedings for the very same assessment year. The first question referred to us is, therefore, answered in favour of the assessee and against the Revenue. Having regard to that answer it is not necessary .....

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