Limitation benefit cannot be reopened once final findings negate suppression and mala fide in tax proceedings.

Where the Tribunal had already recorded a final finding that the assessee had disclosed marketing pattern details, RT-12 returns and related documents, and that there was no suppression or mala fide, the question of limitation could not be reopened by the Revenue. Because that finding was not appealed and had attained finality, the Commissioner (Appeals) was justified in restricting the demand to the normal period. The limitation benefit therefore operated in favour of the assessee.

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Issues: Whether the Revenue could challenge the order granting limitation benefit and restricting the demand to the normal period after the Tribunal had already recorded a final finding that there was no mala fide or suppression by the assessee.

Analysis: The Tribunal had earlier remanded the matter while specifically observing that the assessee had filed marketing pattern details, RT-12 returns and related documents, and that there was no suppression of information. That finding on limitation was not appealed against by the Department and had attained finality. In these circumstances, the Revenue could not reopen the concluded question of limitation before the appellate forum. The Commissioner (Appeals) was therefore justified in extending the benefit of limitation and in confining the demand accordingly.

Conclusion: The limitation finding operated against the Revenue, and the assessee was entitled to the benefit of limitation.

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