1982 (8) TMI 127

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....he ground that the assessment order passed by the ITO was erroneous, in so far as, it was prejudicial to the interests of revenue, as penalty proceedings under s. 271(1) (c) were not invoked by the ITO. He was of the view that on the facts of the case, the ITO should have invoked the penalty proceedings under s. 271(1)(c) in the assessment order and he having failed in doing so, his order was erro....

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....order. When assessment proceedings are quite different from the penalty proceedings and when penalty proceedings can be initiated at any stage during the course of the assessment proceedings, Shri Ranka argues that the assessment order, which has nothing to do with penalty proceedings, cannot be said to be erroneous and prejudicial to the interests of revenue simply for the reason that the ITO did....

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....h Court in the case of Addl. CIT, MP vs. Indian Pharmaceuticals (1980) 123 ITR 874 (MP). No doubt, this authority supports the contention of their revenue that an order of the ITO is erroneous and prejudicial to the interests of revenue, if the ITO fails to invoke penalty proceedings therein. Thus there are authorities in favour and against the assessee. In these circumstances, we follow the golde....