Supreme Court: High Court Erred in Imposing Penalty under Article 226

The Supreme Court held that the High Court erred in exercising jurisdiction under Article 226 and imposing a penalty on the assessee using non-existent provisions under the Act. The recovery of the penalty was stayed as a result of this decision.

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The Supreme Court ordered that the High Court should not have exercised jurisdiction under Article 226 of the Constitution. The High Court imposed a penalty on the assessee based on non-existent provisions under the Act. Recovery of penalty is stayed.

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