https://www.taxtmi.com/caselaws?id=35764 HC held that penalty proceedings under ss.271(1)(a) and 273(b) are independent of assessment proceedings and do not form part of the assessment for purposes of s.263. Failure of the ITO to record opinion on leviability of penalty does not make the assessment erroneous or prejudicial to revenue. Where the ITO omitted to consider interest, the Commissioner should direct the ITO to decide the interest issue on merits after giving the assessee an opportunity of being heard; setting aside the entire assessment was unnecessary. Questions were answered in favour of the assessee and costs were awarded. en-us Mon, 27 Apr 1981 00:00:00 +0530 Fri, 31 Oct 2025 16:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35764 HC held that penalty proceedings under ss.271(1)(a) and 273(b) are independent of assessment proceedings and do not form part of the assessment for purposes of s.263. Failure of the ITO to record opinion on leviability of penalty does not make the assessment erroneous or prejudicial to revenue. Where the ITO omitted to consider interest, the Commissioner should direct the ITO to decide the interest issue on merits after giving the assessee an opportunity of being heard; setting aside the entire assessment was unnecessary. Questions were answered in favour of the assessee and costs were awarded. Case-Laws Income Tax Mon, 27 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35764