Commissioner set aside the entire assessment. The Assessing Officer initiated penalty proceedings. The assessee filed writ petition to quash the penalty proceedings. Dismissing the petition the Court held that the Commissioner by an order under section 263 had set aside the assessment order in its entirety and remanded the case for fresh consideration by the Assessing Officer. Thus, while issuing the order of assessment, the Assessing Officer was bestowed with all powers as in an original assessment, including the power to express his satisfaction for initiating penalty proceedings. The penalty proceedings were valid. (AY. 2015-16)
Mallelil Industries Pvt. Ltd. v. ITO (2022) 444 ITR 80 / 288 Taxman 303 / 213 DTR 387/ 326 CTR 625(Ker.)(HC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Penalty-Concealment-Commissioner setting aside entire Assessment-Assessing Officer acting under such order of remand can initiate penalty proceedings. [S. 143(3), 271 (1)(c), Art, 226]