https://www.taxtmi.com/caselaws?id=37862 Penalty proceedings had to be sustained on the same factual and legal foundation on which they were initiated. Where the Income-tax Officer started penalty action on the footing that a sum represented income from other sources, but the appellate authority later held it to be business income and enhanced the assessment on a different basis, the original foundation for penalty disappeared. The initiating authority could not continue or levy penalty on the fundamentally different footing introduced by the appellate order. The answer was therefore in favour of the assessee, and penalty could not lawfully be imposed on the enhanced amount. en-us Mon, 03 Apr 1978 00:00:00 +0530 Thu, 01 Apr 2010 15:09:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37862 Penalty proceedings had to be sustained on the same factual and legal foundation on which they were initiated. Where the Income-tax Officer started penalty action on the footing that a sum represented income from other sources, but the appellate authority later held it to be business income and enhanced the assessment on a different basis, the original foundation for penalty disappeared. The initiating authority could not continue or levy penalty on the fundamentally different footing introduced by the appellate order. The answer was therefore in favour of the assessee, and penalty could not lawfully be imposed on the enhanced amount. Case-Laws Income Tax Mon, 03 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37862