https://www.taxtmi.com/caselaws?id=785948 Assessment determined unexplained income and investments under the Act but the assessing officer made no prima facie inquiry into compliance with penal provisions or whether penalty proceedings should be initiated. The Tribunal held that the assessing officer must conduct at least a preliminary inquiry and verification when unexplained income is assessed to decide whether initiation of penalty proceedings is warranted; absence of any such inquiry renders the assessment erroneous and prejudicial to revenue. On that basis the revision of the assessment was upheld and the impugned assessment order was set aside, decision against the taxpayer. en-us Fri, 16 Jan 2026 00:00:00 +0530 Mon, 02 Feb 2026 16:20:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785948 Assessment determined unexplained income and investments under the Act but the assessing officer made no prima facie inquiry into compliance with penal provisions or whether penalty proceedings should be initiated. The Tribunal held that the assessing officer must conduct at least a preliminary inquiry and verification when unexplained income is assessed to decide whether initiation of penalty proceedings is warranted; absence of any such inquiry renders the assessment erroneous and prejudicial to revenue. On that basis the revision of the assessment was upheld and the impugned assessment order was set aside, decision against the taxpayer. Case-Laws Income Tax Fri, 16 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785948