2007 (9) TMI 213

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... appeal. 3. Assessment of taxable income of Respondent for the assessment year 1996-97 (Financial Year 1995-96) was carried out by the departmental authorities and concluded with assessment order dated 30.3.1999. The Assessing Officer-DCIT (Investigation), Circle-II, Jalgaon, during the course of assessment, noticed that the assessee had accepted loans/deposits exceeding Rs.20,000/=, by modes otherwise than account payee cheques/demand drafts and had thus contravened Section 269-SS of the Act. By his letter dated 30.3.1999, he referred the matter to Additional CIT, Range-II, Jalgaon, for levy of penalty under Section 271-D of the Act. 4. The Assessee had contested the penalty proceedings before the Additional CIT, Range-II, Jalgaon an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....present appeal. This submission was opposed by learned Asstt. Solicitor General, by contending that the instructions are issued on 24.10.2005 and are prospective in nature, whereas present appeal was filed by the department in August-2004. According to learned Asstt.  Solicitor General, therefore, the appeal does not fall within the clutches of the instructions dated 24.10.2005. 8. Advocate Shri Tripathi has advanced his argument further, by relying upon the judgment of other Division Bench of this High Court at Bombay, in Commissioner of Income Tax vs. Pithwa Engg.  Works, 2005 (276) ITR 519. In this matter, Division Bench of this court was dealing with the similar circular dated 27.3.2000, wherein financial limit for preferri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ular itself saves certain appeals from being obstructed due to financial limits. Paragraph 3 reads; ". The Board has also decided that in cases involving substantial question of law of importance as well as in cases where the same question of law will repeatedly arise, either in the case concerned or in similar cases, should be separately considered on merits without being hindered by the monetary limits." 13. It is evident that, whenever there is a substantial question of law, or question of law which is likely to recur in future, the department is not prohibited from filing and pursuing appeals.  We believe that the saving clause saves present appeal since it involves a question of law regarding interpretation of Section 275-1(....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....income of the assessee for financial year 1995-96 (assessment year 1996-97). It has come in the order of the CIT (Appeals) that the assessment order was dated 30.3.1999. Thus, the assessment proceedings are concluded on 30.3.1999 i.e. within financial year 1998-99, corresponding assessment year being 1999-2000. Consequently, penalty cold have been imposed latest by 31.3.1999, since the assessment proceedings, out of which penalty proceedings took birth, were completed on 30.3.1999. 17. So far as second mode of computation of limitation is concerned, the later half of the clause (C) of Section 275 (1) of the Act is not that difficult to be understood. The penalty proceedings in the present matter were initiated by notice dated 6.4.1999 an....