2007 (2) TMI 202 - HC - Income Tax

Summary

Issues involved:
The issue involves the interpretation of the period of limitation for passing a penalty order under section 271(1)(c) of the Income-tax Act, 1961.

Summary:
The High Court of Punjab and Haryana addressed the question of whether the penalty order dated March 16, 1988, passed under section 271(1)(c) of the Income-tax Act was beyond the period of limitation. The case involved the assessment years 1977-78 to 1980-81. The Tribunal set aside the penalty, citing section 275(a)(ii) of the Act, which prescribes the limitation period for imposing penalties. The Revenue argued that the penalty order was within the limitation period based on the assessment dates. The Court analyzed section 275 of the Act and concluded that the penalty order was not beyond the period of limitation as prescribed. The Court referred to similar views expressed by other High Courts to support its decision. Ultimately, the question was answered in favor of the Revenue, and the reference was disposed of accordingly.