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TMI Blog2019 (4) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 275(1)(a) would, in our view, imply an order which becomes relevant on account of the issue under appeal in quantum proceedings being relevant for the purpose of levy of penalty under Chapter XXI of the Act. The other decisions mentioned in the written submissions, though not relied upon or referred to during hearing, have also been though perused. The decision in Subodh Kumar Bhargava v. CIT [2008 (11) TMI 45 - HIGH COURT DELHI] is on the meaning of the words ‘whichever period expires later’, which has no bearing or is not relevant in the present case; the penalty being admittedly in time w.r.t. s. 275(1)(a). Again, there is no dispute that the time limitation is mandatory, as held in CIT v. Chhajer Packaging & Plastics (P.) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anager). The same did not find acceptance by the Revenue, who regarded it as the assessee s money. Assessment was accordingly made treating it as the assessee s receipt on 17/11/2011. The gross receipt exceeding ₹ 40 lacs, there was, at the same time, violation of section 44AB of the Act obliging an assessee to get his accounts audited, attracting penalty u/s. 271B, i.e., for the failure to get the accounts audited and furnishing an audit report by the due date of filing the return of income u/s. 139(1), proceedings for which were accordingly initiated at the conclusion of the assessment by issue of notice u/s. 271B r/w s.274. The assessee, contesting the assessment in the appellate procedure, requested for keeping the said penalty pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, or six months from the end of the month in which the order of the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever period expires later: Provided that in a case where the relevant assessment or other order is the subject-matter of an appeal to the Commissioner (Appeals) under section 264 or section 246A, and the Commissioner (Appeals) passes the order on or after the 1st day of June, 2003 disposing of such appeal, an order imposing penalty shall be passed before the expiry of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or within one year from the end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the quantum proceedings, it is only deemed proper for the quantum proceedings to arrive at a finality, i.e., at least as far as the facts are concerned, so that the penalty proceedings are based on firm findings of fact, as determined in the appellate proceedings. This explains the rationale of the said exclusion u/s. 275(1)(a) as also clarified by several decisions, as by the Tribunal in Ahuja Rice General Mills v. Dy. CIT [1999] 69 ITD 329 (Asr), the operative part of which (para 6) was also read out during hearing. 4.2 The assessee s case is that the said exclusion cannot apply in his case as the failure to obtain and furnish the audit report u/s. 44AB, though discovered in the quantum proceedings, are independent thereof. The que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice u/s. 274, as held in Ahuja Rice General Mills (supra). 4.3 Sh. Bahl, upon it be so posited by the Bench during hearing, would submit that even if not independent of the quantum proceedings, the time limitation, governed as it is by law, and mandatory, shall prevail. The plea is valid, i.e., in principle; there being, as aforesaid, no estoppel against law. The word relevant qualifying the words assessment or other order in section 275(1)(a) assumes relevance in this regard. Juxtaposed with the relevance and the purpose of the exclusion of the period of determination, at least on matters of fact, in quantum proceedings for concluding penalty proceedings after initiation, leaves one in no manner of doubt that the word relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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