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TMI Blog2022 (1) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 30.08.2012 would be squarely barred by limitation. Decisions relied supra by the ld. DR are factually distinguishable as they were rendered for the Asst Years 2001-02 and 2000-01. Admittedly the law prevailing for the Asst Years 2000-01 and 2001-02 for levy of penalty would be governed by section 275(1)(a) of the Act, where the ld. AO could keep the penalty proceedings in abeyance till the order of tribunal was received. But due to insertion of proviso with effect from 01.06.2003, the ld. AO would be entitled to keep the penalty proceedings in abeyance only till the disposal of the first appeal by the ld. CIT(A). Hence the reliance placed on the decisions by the ld DR would not advance the case of the revenue. Accordingly, as rightl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case. 3. We have heard the rival submissions and perused the materials available on record. At the outset, we find that the ld. AR before us had raised a preliminary objection that the penalty order passed by the ld. AO in the instant case is barred by limitation. Since this goes to the root of the matter, we deem it fit to address this preliminary issue. We find that the assessee firm is engaged in the business of export of fabrics and garments and had filed its return of income for the Asst Year 2003-04 on 12.11.2003 declaring total income of ₹ 67,840/-, together with the computation of income, profit and loss account and audit report. In the scrutiny assessment proceedings, the ld. AO made various additions and disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a preliminary ground that the penalty order dated 30.08.2012 passed by the ld. AO is barred by limitation as per the proviso to section 275(1)(a) of the Act. The ld. AR argued that the order of ld. CIT(A) was passed on 19.01.2010 in the original quantum proceedings and that the said order could have definitely reached the ld. AO before 31.03.2010 and hence the time limit for passing the penalty order would expire by 31.03.2011. Even if it is assumed that the order of the ld. CIT(A) on quantum appeal was received by the ld. AO from the office of the ld. CIT(A) during the financial year 2010-11, still the time limit for passing the penalty order would expire by 31.03.2012.Accordingly , he argued that the penalty order passed by the ld. AO o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he month in which the order of the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Principal Chief Commissioner or Chief Commissioner or Principal 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 246 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the case of the revenue. Accordingly, as rightly pointed out by the ld. AR before us, the time limit for passing the penalty order would expire by 31.03.2011 i.e one year from the end of the financial year in which the order of ld. CIT(A) is passed is received by the ld. Administrative Commissioner having jurisdiction over the assessee. In view of the above, we hold that the penalty order passed by the ld. AO on 30.08.2012 is squarely barred by limitation in view of proviso to section 275(1)(a) of the Act. Hence levy of penalty is hereby cancelled. 3.5. Since penalty order passed by the ld. AO is cancelled as barred by limitation, the other grounds raised by the assessee both on law and on merits need not be gone into as they would b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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