1990 (7) TMI 34 - HC - Income Tax

Summary

The High Court of Orissa addressed a question of law regarding the cancellation of a penalty under section 271(1)(c) for a particular year. The court clarified that although the penalty imposed by the Inspecting Assistant Commissioner was without jurisdiction, the proceeding itself has not ended and must be finalized by the Income-tax Officer with jurisdiction. The court also mentioned that the imposition of penalty may be barred by limitation under section 275 of the Act. The decision was made in favor of the assessee, with the proceeding to be concluded by the Income-tax Officer following the Supreme Court's decision if available.