Penalty Proceedings can’t be initiated in the Absence of Proper Investigation

Brief of the case Delhi High Court in the case of CIT vs. M/s Jain Export Private Ltd.  held that, to initiate proceedings under Section 271(1)(c), it requires proper investigation and higher satisfaction of proof, which confirmed the basis for the initiation of necessary proceedings. In the absence of it the penalty provision can’t be invoked. Facts of the Case The assessee for sale of shares have acquired such shares which was duly reported and accepted by the AO concerned. The Company of which the shares were bought was eventually directed to be wound up and was in the Board of Industria...