S. 263 Non initiation of penalty proceedings during assessment renders it erroneous

Jyoti Ranjan Roy Vs. Pr. CIT (ITAT Kolkata) The limited issue for our adjudication is that Ld. CIT u/s 263 of the Act held the assessment order passed by the AO as erroneous in so far as prejudicial to the interest of Revenue on the ground that penalty proceeding was not initiated in the assessment order. In this regard, we find that Hon’ble Allahabad High Court in the case of CIT vs. Surendra Prasad Agrawal (2005) reported in 275 ITR 113 (All) after considering the judgment of Hon’ble Delhi High Court in the case of CIT vs. Surendra Talkies reported 200 ITR 153 (Del) as well as CI...