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of <h1>Firm's Tax Penalties Cancelled Due to Time Limit; Assessing Officer's Actions Invalid</h1> The Tribunal dismissed the appeals regarding penalties imposed on a registered firm for failure to file income tax returns and estimate advance tax within ... - Issues:1. Failure to file income tax return and estimate of advance tax within prescribed time.2. Failure of the assessing officer to initiate penalty proceedings under relevant sections.3. Validity of penalties imposed under sections 271(1)(a) and 273(b).4. Time limitation for imposition of penalties.5. Effect of Tribunal's order on penalties levied by the assessing officer.Analysis:1. The appeals involved the failure of the assessee, a registered firm, to file the income tax return for the assessment year 1964-65 within the prescribed time under section 139(1) and to provide an estimate of advance tax payable during the preceding financial year.2. The assessing officer failed to initiate penalty proceedings under sections 271(1)(a) for late submission of return and under section 273 for failure to pay advance tax. The Commissioner of Income Tax (CIT) found the assessment order prejudicial to the interest of revenue under section 263 and directed a fresh assessment with instructions to consider penalties.3. The Appellate Assistant Commissioner (AAC) canceled the penalties imposed under sections 271(1)(a) and 273(b) during the fresh assessment proceedings. The penalty under section 271(1)(a) was deemed time-barred as it was passed after the prescribed date, and the penalty under section 273(b) was also canceled due to exceeding the limitation period.4. The Departmental Representative argued for the consideration of penalties despite the Tribunal's order, while the assessee's counsel contended that the penalties lacked a valid legal basis as per the Tribunal's decision. The Tribunal upheld the assessee's argument, stating that the penalties imposed by the assessing officer were time-barred and lacked legal basis.5. The Tribunal's order dated March 30, 1972, canceled the CIT's order regarding penalties and deemed the penalties imposed by the assessing officer as invalid due to being beyond the limitation period. Consequently, the Tribunal declined to interfere, and the appeals were dismissed.
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