1983 (9) TMI 149

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....8 and an addition of Rs. 14,000 was made to the total income as income from undisclosed sources. In para 2 of the assessment order, it was specifically mentioned that the penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961 ('the Act') will be started for the purpose, but there was no such mention at the end of the order. The ITO, therefore, proposed to pass another order under ....

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....to a decision of the Delhi High Court in CIT v. Rajinder Kumar Somani [1980] 125 ITR 756, wherein a penalty notice was served upon the assessee after service of the assessment order and notice of demand and the finding of the Tribunal was that no action can be initiated in the course of the assessment proceedings. The High Court thereupon refused to interfere with this finding. We are afraid, we a....

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....ceeding furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other pro....

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....n was held to be allowable by an order under section 154. In any case, the present order seeking to rectify the assessment order under section 154 was not at all appealable to the AAC. According to section 246, clause (1)(f) of the Act, an order under section 154 or 155 of the Act is appealable only when it has the effect of enhancing the assessment, reducing a refund or refusing to allow a claim ....