9911796707
TMI Blog1990 (3) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 15-9-84 (passed consequent to the directions of ITAT order dated 4-1-83) with reference to which the limitation shall reckon in terms of section 275(a)(ii) of the Income-tax Act, 1961. " 2. Before considering the above common ground of appeal, we state in brief the facts of the case having bearing on the issue for the 4 assessment years under appeal. The ITO initiated penalty proceedings under section 273(a) at the time of passing the assessment order. However, the assessments made by the ITO were not accepted by the assessee and appeals were filed before the first appellate authority who disposed of the appeals and all the appeals were partly allowed. Aggrieved by the orders of the first appellate authority, both the assessee and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were passed on10-1-1985, the same were out of time. The revenue aggrieved by the above orders of the CIT(Appeals) is in appeal before the Appellate Tribunal. 3. The submission by the Ld. DR was that the order passed by the Tribunal on 4-1-1983, which was served upon the CIT on 25th January, 1983 was not final, inasmuch as, it had restored the appeals to the file of the CIT(Appeals) and the CIT(Appeals) has passed a final order on 31-10-1986 and, therefore, the limitation should have been counted from 31-10-1986 and not from 4-1-1983. He further submitted that the orders passed by the ITO on10-1-1985were well within the time allowed under section 275 and, therefore, CIT(A)'s orders are erroneous and liable to be reversed. 4. The ld. co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re completed. Explanation : In computing the period of limitation for the purposes of this section (i) the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 129; (ii) any period during which the immunity granted under section 245H remained in force; and (iii) any period during which a proceeding under this Chapter for the levy of penalty is stayed by an order of injunction of any court; shall be excluded. " 6. According to these provisions, penalty orders are to be passed by the ITO within 2 years from the end of the financial year in which the proceedings in the case of which action for imposition of penalty had been initiated were completed. However, where the assessment order or the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy penalty without waiting for the decision of the Tribunal on appeal, if any, filed by the assessee. However, where the first appellate authority disposes of the appeal in favour of the assessee then nothing is left for levy of penalty. In that case, the assessing officer has been allowed to keep the penalty proceedings in suspense till an order of the Tribunal is available. Further period of 6 months is allowed to the ITO for levying penalty (after the order of the Tribunal) from the end of the month in which the order of the Tribunal is served upon the Commissioner. Section 275(a)(ii) refers to cases where the relevant assessment or other order is the subject matter of an appeal to the AAC or Commissioner (Appeals) or the Tribunal, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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