9911796707
TMI Blog2024 (12) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... ings are not initiated within the period of limitation, prescribed therein, it will be barred by limitation. Therefore, the bar is based on failure to initiate proceedings and not on mere filing of appeal. That is what flows on literal reading of the provision. There is no warrant for us to add something more into it and to create a new bar on initiation or continuance of penalty proceedings upon mere filing of appeal. Therefore, the submission of learned counsel for the petitioner in this regard must fail. Remedy u/s 220 (6) - We are of the view that at this stage, the writ remedy need not be invoked because the petitioner does have a remedy under the law. Whether or not in a given case, stay of demand has to be ordered, would essentially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed. 3. Learned counsel for the petitioner would further submit that unless a demand notice is actually issued against the petitioner, he may not take recourse to the provisions contained in Section 220 (6) of the Act of 1961. 4. On the other hand, learned counsel appearing for the respondent-Revenue would submit that the provisions contained in Section 275 (1) (a) does not create an absolute embargo on initiation of penalty proceedings but it only bars such proceedings to be initiated beyond prescribed period of limitation. 5. He would next submit that even if the Appellate Authority may not stay the demand created under order of assessment, impugned in the appeal, the petitioner otherwise has a remedy of making such application for st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which the order of the [Joint Commissioner (Appeals) or 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 [Joint Commissioner (Appeals) or to the] Commissioner (Appeals) under section 246 or section 246A, and [the Joint Commissioner (Appeals) or] the Commissioner (Appeals) passes the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of 1961 could not be taken recourse to unless a notice for initiation of penalty proceedings or demand is issued against the petitioner. 11. We do not find any difficulty in holding that the remedy under Section 220 (6) of the Act of 1961 would be available as soon as any demand is issued against the petitioner. There is a complete mechanism provided under the law. Even though the Appellate Authority before whom the assessment order is under challenge may not stay the demand which is initiated separately by instituting proceedings, the moment such notices are issued, the provisions contained in Section 220 (6) of the Act of 1961 and the remedy engrafted therein, becomes invocable at the instance of the assessee. It will always be open fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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