Sikri & Co. Pvt. Ltd. vs Commissioner Of Income-Tax on 10 July, 1974
This question, whether in cases where proceedings for imposition of penalty had been taken during the course of assessment, two proceedings should be concluded simultaneously, had been argued though from slightly different
point of view in the case of Nawn Estates Private Ltd. v. Commissioner of Income-tax , which counsel had argued before us a few days ago. It must, however, be mentioned that there the point was that after the completion of the assessment proceedings the penalty proceeding could not have continued. In this case, however, the question is urged in a slightly different form in the sense that according to counsel for the assessee the penalty proceeding must be concluded before the assessment proceedings and if the same were not so concluded, the assessment proceeding could not be completed thereafter. Really the question forms part of the larger aspect whether, in cases where a proceeding had been taken for imposition of penalty, these proceedings must terminate at the equal point of time or whether the penalty proceeding must be completed before the completion of the assessment proceedings.