2011 (1) TMI 420

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....p; Mr. Pankaj Jain, Advocate for the respondent.   AJAY KUMAR MITTAL, J.   1. The appeal was admitted by this Court vide order dated May 4, 2006 for determination of the following substantial question of law:-   "Whether the Commissioner while exercising jurisdiction under Section 263 of the Income Tax Act, 1961 (for short 'the Act') can direct for initiation of proceedi....

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....ingly, the assessment was framed by the Assessing Officer. Commissioner of Income Tax (in short "the CIT") vide order dated 11.1.1999 in exercise of power under Section 263 of the Act set aside the assessment order holding that the same was erroneous and prejudicial to the interest of the revenue. The CIT directed the Assessing Officer to frame fresh assessment after taking into account the facts ....

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....nt made by Finance Act, 2002 which has been made effective from 1.6.2002, whereby Section 271(1) itself has been amended and the Commissioner has been empowered to levy penalty. According to the learned counsel, it is only after 1.6.2002 that the CIT would have jurisdiction to order for initiating penalty proceedings while passing an order under Section 263 of the Act whereas the present case is g....