Independent penalty proceedings bar assessment revision solely for non-initiation of under-reporting penalties in completed assessments.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Section 263 revision cannot be invoked solely because the Assessing Officer did not initiate penalty proceedings under section 270A. Penalty proceedings are independent of assessment proceedings, so a failure to record an opinion on penalty liability does not make the assessment order erroneous and prejudicial to the interests of the Revenue. Revisional jurisdiction therefore cannot be used to direct initiation of penalty proceedings, including under a different penalty provision. The revision order was quashed and the assessee's appeal was allowed.....