Income Tax Proceedings against Dissolved HUF Invalid: Calcutta HC Quashes ₹7.29 Crore Penalty

Calcutta HC quashed income tax proceedings against a dissolved HUF, including a ₹1.2 crore penalty, ruling the assessment invalid after partition. The judgment clarifies that tax authorities cannot continue proceedings against non-existent entities, though they may pursue individual members for dues. The court emphasized proper verification of entity status before initiating demands.