2007 (2) TMI 202

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..... the Income-tax Act, is beyond the period of limitation?" Briefly the facts, as noticed in the statement of the case, are that the assessee for the assessment year 1977-78 filed his return on March 16, 1981, declaring a loss of Rs. 10,232. While framing the assessment on March 28, 1982, income was determined at Rs. 46,205, which was set aside by the Appellate Assistant Commissioner vide order dated March 30, 1984, to the file of the Assessing Officer. After remand of the case by the Appellate Assistant Commissioner, the assessment was again framed vide order dated March 14, 1986, and the income was assessed at Rs. 21,264. The penalty proceedings culminated into an order under section 271(1)(c) of the Income-tax Act, 1961, (for short, "the .....

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..... assessment or other order is the subject matter of an appeal to the Appellate Assistant Commissioner or the Commissioner (Appeals) under section 246 or an appeal to the Appellate Tribunal under sub-section (2) of section 253, after the expiration of a period of- (i) two years from the end of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or (ii) six months from the end of the month in which the order of the Appellate Assistant Commissioner or. the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Commissioner, whichever period expires later; (b) in any other case, after the expiration of two years from the .....

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..... by the Commissioner. However, the last date would be the date which expires later out of the either of two clauses above. Sub-clause (b) of section 275 provides that in other cases the maximum period for levy of penalty would be two years from the end of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed. This sub-clause deals with limitation for levy of penalty in a case where penalty is levied simpliciter after assessment. In our opinion, the case in hand would fall within the provisions of section 275(a) for the purpose of calculation of limitation for passing the order of penalty. Sub-clause (i) thereof clearly provides the period of limitation to be t .....

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