https://www.taxtmi.com/caselaws?id=7370 Penalty under the Income-tax Act could not be sustained against a Hindu undivided family after a partition had been recorded under section 25A(1), because that order was treated as declaratory of the family's cessation from the date of disruption. Penalty, being in the nature of additional tax, can be imposed only on a person in existence when proceedings are initiated and when the penalty order is passed. As the proceedings had been taken against the assessee in an individual capacity and the Hindu undivided family had already ceased to exist, there was no estoppel by conduct and earlier assessments could not validate penalty action against the non-existent entity. en-us Fri, 02 Aug 1968 00:00:00 +0530 Wed, 18 Feb 2009 19:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7370 Penalty under the Income-tax Act could not be sustained against a Hindu undivided family after a partition had been recorded under section 25A(1), because that order was treated as declaratory of the family's cessation from the date of disruption. Penalty, being in the nature of additional tax, can be imposed only on a person in existence when proceedings are initiated and when the penalty order is passed. As the proceedings had been taken against the assessee in an individual capacity and the Hindu undivided family had already ceased to exist, there was no estoppel by conduct and earlier assessments could not validate penalty action against the non-existent entity. Case-Laws Income Tax Fri, 02 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7370