1987 (8) TMI 148

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....sioner dated 8-8-1985 made under section 263. The Commissioner found that though there was delay in filing of the return, the Income-tax Officer had not charged any interest under sections 139(8) and 215 nor initiated penalty proceedings under section 271(1)(a). After considering the objections of the assessee, he passed an order under section 263 wherein he held that the assessment order is erron....

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....271(1)(a). The learned counsel submitted that the assessment proceedings and the penalty proceedings are separate and independent proceedings. On account of non-initiation of penalty proceedings under sec. 271(1)(a), the Commissioner cannot invoke section 263. He placed reliance on few decisions. The learned Departmental Representative submitted that even though the penalty order may be separate o....

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....in assessment order that the penalty proceedings are initiated. Thus, in our view, the CIT was not justified in invoking the provisions of section 263. In coming to this conclusion, we derive support from the decisions of the Delhi High Court in the cases of Addl. CIT v. J. K. D'Costa [1982] 133 ITR 7, Addl. CIT v. Achal Kumar Jain [1983] 142 ITR 606, Addl. CIT v. Precision Metal [1986] 156 ITR 69....