2005 (1) TMI 18

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in canceling the order under section 263 of the Income-tax Act when the order of the Income-tax Officer was erroneous and prejudicial to the interests of the Revenue on account of his failure to i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....specified period. The Commissioner of Income-tax examined the assessment record and other materials and being of the opinion that the failure to initiate penalty proceedings under section 271B of the Act by the assessing authority while passing the assessment order had caused the assessment order to be erroneous as also prejudicial to the interests of the Revenue warranting action under section 26....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Act on the following grounds: "Coming to the substantiality of the Commissioner's order under section 263 of the Income-tax Act, we notice that the same cannot be sustained by us. There are definite parameters within which alone the provisions of section 263 can be invoked. Unless the order of the Income-tax Officer is erroneous and prejudicial to the interests of the Revenue, in clear terms th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ken and the respondent would not raise any objection. We have heard Shri A.N. Mahajan, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. We find that this court in I.T.R. No. 148 of 1984, CIT v. Sri Surendra Prasad Agrawal [2005] 275 ITR 113 decided on September 1, 2004, has held that failure to initiate penalty proceedings at the time of pas....