9911796707
TMI Blog1995 (11) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Tribunal erred in law in confirming the view of the learned Commissioner, of Income-tax (Appeals) that the limitation period of two years was to be taken from the end of the financial year in which the assessment proceedings were completed and not six months from the end of the month in which the order of the Commissioner (Appeals) in the registration matter was received by the Commissioner ? " In order to appreciate the controversy, it is necessary to state in brief the events which culminated in the imposition of the penalty and the reference made by the Tribunal. M. A. Presstressed Works, Mandore Mandi, Jodhpur ("the assessee"), was a registered firm. For the assessment year 1976-77, by the order dated August 27, 1977, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee, the assessee preferred three appeals before the Commissioner of Income-tax (Appeals), Jodhpur. The appeals filed by the assessee were allowed by the Commissioner of Income-tax (Appeals) on the ground that the order passed by the Income-tax Officer, imposing the penalties, was barred by time in view of section 275 of the Income-tax Act. The Revenue preferred an appeal against the order of the Commissioner of Income-tax (Appeals) dated August 9, 1988, before the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, and the Tribunal, by its order dated January 19, 1990, dismissed the appeal filed by the Revenue and held that the assessment proceedings were completed on July 30, 1983, and the appellate order was passed on Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration in the case of the assessee was received in the office of the Commissioner on September 25, 1987, and the order imposing the penalty was passed on March 24, 1988, which is well within the period of six months and the learned Members of the Tribunal as well as the Commissioner of Income-tax (Appeals), Jodhpur, therefore, erred in holding that the appeal was barred by time. We have considered the submissions made by learned counsel for the Revenue. Section 274 of the Income-tax Act provides the procedure for imposing the penalty while section 275 sets out the time-limit within which the penalty proceedings must be completed. Section 275 requires to complete the penalty proceedings within two years from the end of the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever period expires later ; (b) in any other case, after the expiration of 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." Section 275 divides the cases into two categories : the first category of cases is where the assessment order or the order to which proceedings for imposition of penalty relate, was the subject-matter of appeal under section 246 or an appeal under section 253. The limitation for the cases falling under this category, is two years from the end of the, financial ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the proceedings for cancellation of the registration were initiated after the expiry of the period of limitation. The Revenue cannot take shelter of cancellation order which was subjected to appeal, for the purpose of imposition of the penalties. The limitation of two years is provided from the assessment order or any other order in which the income-tax authorities were satisfied about the default which attracted the penalty and not the order of cancellation of the registration. Section 275 aims at avoiding hardship to the assessee and to ensure that penalty proceedings are completed well within the time. It enables the authority to pass a penalty order within the stipulated period provided under the Act after completion of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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