https://www.taxtmi.com/caselaws?id=36726 Penalty proceedings under the Income-tax Act, 1961 are initiated only when the assessing authority takes a definite affirmative step before completion of the assessment, such as issuing notice, directing issue of notice, or making a reference for penalty action. A mere recital in the assessment order that penalty proceedings will be initiated separately is insufficient and does not satisfy section 275. On the facts, no such direction or step was taken before the assessment ended, and the notices were issued only afterwards. The cancellation of the penalties was therefore justified. en-us Wed, 30 Apr 1980 00:00:00 +0530 Wed, 24 Mar 2010 11:36:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36726 Penalty proceedings under the Income-tax Act, 1961 are initiated only when the assessing authority takes a definite affirmative step before completion of the assessment, such as issuing notice, directing issue of notice, or making a reference for penalty action. A mere recital in the assessment order that penalty proceedings will be initiated separately is insufficient and does not satisfy section 275. On the facts, no such direction or step was taken before the assessment ended, and the notices were issued only afterwards. The cancellation of the penalties was therefore justified. Case-Laws Income Tax Wed, 30 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36726