https://www.taxtmi.com/caselaws?id=798289 Section 263 revisionary jurisdiction cannot be used to direct initiation of penalty under Section 271AAD where the Principal Commissioner lacks statutory power to impose or direct that penalty. Penalty proceedings are separate from assessment proceedings; therefore, an assessment order is not erroneous and prejudicial to Revenue merely because penalty was not initiated. Where the underlying disallowance remains before the first appellate authority, that authority may independently initiate penalty if warranted. A revisional authority cannot require the assessing authority to perform an act that the revisional authority itself is not empowered to perform. The direction to initiate penalty was beyond jurisdiction and invalid. en-us Tue, 18 Aug 2026 00:00:00 +0530 Fri, 04 Sep 2026 08:24:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798289 Section 263 revisionary jurisdiction cannot be used to direct initiation of penalty under Section 271AAD where the Principal Commissioner lacks statutory power to impose or direct that penalty. Penalty proceedings are separate from assessment proceedings; therefore, an assessment order is not erroneous and prejudicial to Revenue merely because penalty was not initiated. Where the underlying disallowance remains before the first appellate authority, that authority may independently initiate penalty if warranted. A revisional authority cannot require the assessing authority to perform an act that the revisional authority itself is not empowered to perform. The direction to initiate penalty was beyond jurisdiction and invalid. Case-Laws Income Tax Tue, 18 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798289