Shri Vijay D. Patel,, Ahmedabad vs The Cit-7,, Ahmedabad on 27 January, 2022
5.2 The ld. Departmental Representative on the other hand countered by
relying on the order of the Ld. PCIT, who had placed reliance on the
decision of the Hon'ble Allahabad High Court in the case of CIT vs.
Associated Contractors Corporation 275 ITR 133, for the proposition that
non initiation of penalty proceedings by the Assessing Officer renders the
assessment order erroneous for the purposes of exercising revisionary
I.T.A No. 2022/Ahd/2015 A.Y. 2008-09 Page No 6
Vijay D. Patel vs. CIT
powers by CIT u/s 263 of the Act. He further contended that subsequent
order passed making no additions on the directions made in order passed u/s
263 of the Act is of no relevance for the purposes of determining whether
the revision was in accordance with law. That what is to be seen is whether
prima facie there has been made out a case of error in the order of the AO
causing prejudice to the Revenue.