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TMI Blog1993 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no penalty can be levied, as the Income-tax Officer initiated penal action in the course of reassessment proceedings in connection with the regular assessment as contemplated by section 273 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings under section 273(b) could not be legally initiated in the course of reassessment proceedings. Feeling aggrieved, the Revenue went up in appeal to the Income-tax Appellate Tribunal which upheld the order of the Appellate Assistant Commissioner by finding that penalty could be imposed in regular assessment proceedings. Counsel for the Commissioner argued that section 273(a) is not confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m those contemplated by the said provision. In other words, the submission was that reassessment proceedings cannot be kept at par and hence, no penalty could be levied in these proceedings. Learned counsel for the assessee contended that the expression "regular proceedings" having been defined in the Act, it is that meaning which has to be given for the purposes of section 273(a). The settled pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147(a) read with section 143(3) were not "regular assessments" within the meaning of section 273(b) read with section 212(3) and, therefore, the levy of penalty was not valid. We are in agreement with the aforesaid view and hold that we cannot read the words "regular assessment" as occurring in section 273 as justifying the levy of penalty in the proceedings under section 147(b). The same view was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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