1987 (1) TMI 159

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....e penalty had been imposed by the WTO on the ground that the assessee had not disclosed her investment with M/s Bhatia Brothers to the extent of Rs. 25,000. After the original assessment had been mad, the WTO made a reassessment and it is stated that the proceedings were opened under s. 17 of the WT Act. The WTO held that the wealth to the extent of Rs. 25,000 having been concealed, penalty under ....

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....volved was only Rs. 250. 3. The AAC made enquiries in the matter and found that there was no notice under s. 17 on record and there was no mention of the issue of this notice either on the order-sheet or anywhere else. The WTO only referred to the assessment order where a mention of s. 17 had been made. The WTO had also stated before the AAC that in view of the provisions of s. 42(c) of the IT ....

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....It is open to the assessee to challenge the validity of the assessment in the penalty proceedings and after it is found that the assessment itself was not valid in law, penalty can be cancelled. As there is nothing before us to rebut the finding of the ld. AAC that the proceedings had not been regularised by issue of notice under s.17, we uphold his inference that the assessment made was not in ac....