2001 (8) TMI 54 - HC - Income Tax

Summary

The High Court of Madras ruled that the Assessing Officer has discretion under section 271(1)(c) of the Income-tax Act, 1961, to initiate penalty proceedings. The court held that once penalty proceedings had been dropped and became final, it was not permissible to initiate fresh penalty proceedings for the same assessment year. The judgment was in favor of the assessee.