https://www.taxtmi.com/caselaws?id=39101 Penalty proceedings under section 28(1)(a) of the Indian Income-tax Act, 1922 are treated as independent and separate from assessment proceedings, so a reassessment does not extinguish liability for an earlier default. The levy of penalty need not be simultaneous with the original assessment or completed before disposal of the appeal against that assessment, because penalty follows quantification of tax and operates through a separate statutory machinery. For computing the penalty ceiling, the relevant base is the tax actually payable when the penalty is imposed; where reassessment has replaced the original assessment, the reassessed tax forms that base. en-us Fri, 23 Jan 1976 00:00:00 +0530 Mon, 12 Apr 2010 18:24:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39101 Penalty proceedings under section 28(1)(a) of the Indian Income-tax Act, 1922 are treated as independent and separate from assessment proceedings, so a reassessment does not extinguish liability for an earlier default. The levy of penalty need not be simultaneous with the original assessment or completed before disposal of the appeal against that assessment, because penalty follows quantification of tax and operates through a separate statutory machinery. For computing the penalty ceiling, the relevant base is the tax actually payable when the penalty is imposed; where reassessment has replaced the original assessment, the reassessed tax forms that base. Case-Laws Income Tax Fri, 23 Jan 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39101