2017 (3) TMI 1567

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....t by : Shri Tufail Ahmad Khan O R D E R PER C.N.PRASAD (J.M.) : This appeal is filed by the Assessee against the order of the Ld. CIT-5, Mumbai dated 17.12.2013 passed u/s 263 of the Act. 2. The Ld. Counsel for the Assessee at the outset submits that the Ld. CIT passed order u/s 263 cancelling the assessment order passed u/s 143(3) of the Act and directed the Assessing Officer to initi....

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.... course of assessment has rendered assessment order erroneous and prejudicial to the interest of the revenue. Therefore, he submits that the Ld. CIT directed the Assessing Officer to initiate penalty proceedings u/s 271(1)(c) of the Act. The Ld. Counsel for the Assessee submits that the Assessing Officer has discretion to initiate penalty proceedings or not and the Assessing Officer has taken a co....

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....ther the Ld. Commissioner has power u/s 263 of the Act to direct the Assessing Officer to initiate penalty proceedings u/s 271(1)(c) of the Act. The Ld. Commissioner passed order u/s 263 holding that the omission on the part of the Assessing Officer to initiate penalty proceedings during the course of assessment has rendered the assessment order erroneous and prejudicial to the interest of the rev....

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.... case of CIT Vs. Subash Kumar Jain (supra). There are divergent views of the High Courts on the subject. Therefore, following the order of the Hon'ble Supreme Court in the case of CIT Vs. Vegetable Products [82 ITR 1], when two views are possible, the view in favour of the Assessee is to be followed. Therefore, respectfully following the decision of the Gujarat High Court in the case of CIT Vs. Pa....