1976 (4) TMI 125

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....ve been passed by the ITO in this regard was neither signed by him nor was it dated. The AAC found force in the contention of the assessee that there was no valid order in the eye of law levying the penalty. The other contention raised by the assessee was that the successor ITO had not issued another show cause notice before imposing the penalty. The AAC found force in this contention of the assessee also and he observed that the assessee thus was not given a reasonable opportunity of being heard before the penalty was levied by the successor ITO. He accordingly cancelled the penalty of Rs. 1,000 levied by the ITO under s. 140A(3). The Department is in appeal before us against the said action of the AAC. 2. The learned Departmental Repre....

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....cer concerned as to what further action was to be taken in the proceedings pending for that year. The entry in the order sheet may also indicate the directions for the issuance of a notice or may record the presence of an assessee or its representative on a particular date. The entry in the order sheet however could not amount to the marking of a regular or a formal order under the Act. The provisions of s. 156 require that when any tax, interest, penalty, fine or any other sum was payable in consequence of an order passed under the IT Act, the ITO shall serve on the assessee a notice of demand in the prescribed from specifying the sum so payable. In other words, the notice of demand is to issue only where there is an order passed under the....