https://www.taxtmi.com/caselaws?id=431219 The Tribunal vacated the order of the Principal Commissioner of Income Tax under Section 263, ruling that the Assessing Officer's decision to drop penalty proceedings was not erroneous. The show cause notice under Section 263 was deemed invalid as it related to penalty proceedings, not assessment proceedings. The dropping of penalty proceedings under Section 271(1)(c) was upheld, as the AO had properly considered the facts. The direction to re-compute tax liability under Section 115BBE was found to be without jurisdiction. The appeal of the assessee was allowed, and the order was issued on 6th December 2022. en-us Tue, 06 Dec 2022 00:00:00 +0530 Wed, 07 Dec 2022 17:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431219 The Tribunal vacated the order of the Principal Commissioner of Income Tax under Section 263, ruling that the Assessing Officer's decision to drop penalty proceedings was not erroneous. The show cause notice under Section 263 was deemed invalid as it related to penalty proceedings, not assessment proceedings. The dropping of penalty proceedings under Section 271(1)(c) was upheld, as the AO had properly considered the facts. The direction to re-compute tax liability under Section 115BBE was found to be without jurisdiction. The appeal of the assessee was allowed, and the order was issued on 6th December 2022. Case-Laws Income Tax Tue, 06 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431219