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TMI Blog1987 (8) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh there was delay in filing of the return, the Income-tax Officer had not charged any interest under sections 139(8) and 215 nor initiated penalty proceedings under section 271(1)(a). After considering the objections of the assessee, he passed an order under section 263 wherein he held that the assessment order is erroneous and prejudicial to the interests of revenue as the Income-tax Officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty proceedings are separate and independent proceedings. On account of non-initiation of penalty proceedings under sec. 271(1)(a), the Commissioner cannot invoke section 263. He placed reliance on few decisions. The learned Departmental Representative submitted that even though the penalty order may be separate one, the initiation of penalty proceedings under sec. 271(1)(a) has to be done ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew, the CIT was not justified in invoking the provisions of section 263. In coming to this conclusion, we derive support from the decisions of the Delhi High Court in the cases of Addl. CIT v. J. K. D'Costa [1982] 133 ITR 7, Addl. CIT v. Achal Kumar Jain [1983] 142 ITR 606, Addl. CIT v. Precision Metal [1986] 156 ITR 693 and the decision of the Rajasthan High Court in CIT v. Keshrimal Parasmal Wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to above. The Special Leave Petition preferred against the decision of J. K. Da'Costa' case has also been dismissed by the Supreme Court. 5. We are of the view that the order of the Commissioner to the extent of directing the Income-tax Officer to initiate penalty proceedings under sec. 271(1) (a) cannot be sustained. Accordingly, we set aside his order to that extent. 6. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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