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2022 (6) TMI 669 - MADRAS HIGH COURTPenalty u/s 271(1)(c) - Period of limitation - denial of deduction u/s 11 - HELD THAT:- As per the proviso to the Section 275(1), an order imposing penalty shall be passed before the expiry of the financial year, in which proceedings, in the course of which an action for imposition of penalty has been initiated, are completed within 1 year from the end of the financial year, in which the order of the Deputy Commissioner (Appeals) or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever is later. The facts on record indicate that the petitioner is well aware of the fact that the petitioner was not entitled to claim exemption under Sections 11 and 12 of the Income Tax Act, 1961, once the registration under Section 12A of the Act had been cancelled on 30.12.2010. The Tribunal has also affirmed the views and therefore, the petitioner is in appeal. As on date, the petitioner is not entitled to claim exemption as a charitable institution. Therefore, while filing the successive returns under Section 139 of the said Act, the petitioner has to arrived at the correct taxable income and pay the tax thereon. Even if the petitioner wants to claim exemption, it is for the petitioner to have arrived at the correct tax that was payable by the petitioner as ordinary tax assessee, who does not enjoy the exemption and file returns. As the petitioner was well aware of the fact that this is the case of filling of inaccurate particulars in the returns and the petitioner has also replied to the same in the notices issued to the petitioner. The petitioner had earlier filed writ petition long after the notices were issued, after the assessment orders were passed by the Assessing Officer. It is only by way of an afterthought the petitioner had challenged the notices. There is no merits in the present writ petitions. The petitioner has to workout the remedy against the orders passed under Section 274 r/w Section 271 (1) (C) of the Income Tax, Act 1961 before the Appellate Commissioner.
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