9911796707
TMI Blog2002 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... 995, for a valuable sale consideration of Rs. 1,76,000. The assessment of the petitioner for the year 1995-96 was completed under section 144 read with section 147 of the Income-tax Act ("the Act" for short), on March 23, 2000, determining the total income of Rs. 1,59,884 which is inclusive of long-term capital gain of Rs. 1,27,210. Subsequently, notice under section 274 read with section 271 of the Act was served on the petitioner on the ground that the assessee failed to disclose the long-term capital gains arising out of the sale of his residential site escaping capital gains for the assessment year 1995-96 within the meaning of section 147 of the Act. Notice under section 148 of the Act was issued calling upon the petitioner to file hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B levying penalty of Rs. 25,442 on October 4, 2000, as per annexure B was clearly barred by time and, therefore, the order passed by R-2 has to be set aside. The petitioner has also raised an important question of law whether the Explanation to section 275 of the Act can be made use of by the Department to save the limitation when the assessee has not requested the Department to rehear the matter under the proviso to section 129 of the Act. Before the Commissioner the petitioner has mainly questioned the correctness of the order passed by R-2 as per annexure B contending that no penalty can be levied by R-2 beyond six months from the end of the month in which action for imposition of penalty is initiated. Learned counsel for the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be reheard 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 or injunction of any court, shall be excluded." It is clear from the Explanation to section 275 of the Act that the assessee is entitled to seek an opportunity for rehearing under the proviso to section 129 of the Act. From this it is clear that if there is any application or a request is made by the assessee to provide him an opportunity for rehearing and if such rehearing is given by the authorities, then the time taken in giving opportunity to the assessee can be computed for the purpose of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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