https://www.taxtmi.com/caselaws?id=6827 During pendency of an appeal against assessment, the proviso to section 41(1) suspends the assessee's deemed default until the appellate authority gives sanction to proceed, and penalty under section 42(1) can be imposed only after that statutory safeguard is satisfied. The commentary further states that the taxing authority's discretion to impose penalty must be exercised judicially and on relevant considerations. It also emphasises that an order made under the proviso and section 42(1) must disclose the prior sanction and the reasons showing application of mind; omission to record these jurisdictional facts and the basis of discretion renders the order invalid. en-us Mon, 09 Jan 1967 00:00:00 +0530 Sun, 06 Feb 2011 02:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6827 During pendency of an appeal against assessment, the proviso to section 41(1) suspends the assessee's deemed default until the appellate authority gives sanction to proceed, and penalty under section 42(1) can be imposed only after that statutory safeguard is satisfied. The commentary further states that the taxing authority's discretion to impose penalty must be exercised judicially and on relevant considerations. It also emphasises that an order made under the proviso and section 42(1) must disclose the prior sanction and the reasons showing application of mind; omission to record these jurisdictional facts and the basis of discretion renders the order invalid. Case-Laws Income Tax Mon, 09 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6827