TaxTMI 
TaxTMI 
2018 (3) TMI 149
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....he counter affidavit filed by the respondent. 2. Since the relief sought for, in these Writ Petitions is common and the petitioner in W.P.No.31217 of 2017, being the Company and the other petitioners, being the Directors, all these Writ Petitions were heard together and disposed of, by the common order. W.P.No.31217 of 2017, filed by the Company is taken as a lead case, and it would suffice to refer to the facts stated thereunder. 3. The petitioner seeks for issuance of a writ of certiorari, to quash the notice issued by the respondent under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter, referred to as 'the Act') dated 14.09.2017. The proceedings, which led to the issuance of the impugned notice are as hereunder:-....
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....on 275 of the Act. It is further submitted that the respondent ought to have initiated penalty proceedings for the impugned assessment years (in W.P.No.31217 of 2017, AY 2011-12) either before the end of the financial year, in which, the proceedings have been initiated, or within a period of six months from the date of passing of the order by the CIT (A). 5. It is further submitted that, by issuing the impugned notices dated 11.09.2017 and 14.09.2017, the respondent failed to satisfy either provision, as stipulated under Section 275 of the Act. In support of such contention, petitioners placed reliance on the decision of the Hon'ble High Court of Delhi, in Principal Commissioner of Income-tax (Central)-2 Vs. Mahesh Wood Products (P) ....
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....be passed [(a) in a case where the relevant assessment or other order is the subject matter of an appeal to the Commissioner (Appeals) under section 246 16[or section 246A] or an appeal to the Appellate Tribunal under section 253, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed16a, or six months from the end of the month in which the order of the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever period expires under; [Provided that in a case where the relevant assessment or other order is the subject-matter of an appeal to the Com....
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....or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty is passed before the order of the Commissioner (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court is received by the Chief Commissioner or the Commissioner or the order of revision under section 263 or section 264 is passed, an order imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty may be passed on the basis of assessment as revised by giving effect to such order of the Commissioner (Appeals) or, the Appellate Tribunal or the High Court, or the Supreme Court or order of revision under section 263 or section 264." 9. Sub Section (1) of Section 275 ....
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....r Section 143(3) was passed on 30.12.2016. Therefore, the limitation for initiation of penalty under Section 275 (1) (a) of the Act, is on or before 31.03.2017, as per the first limb of the said provision. According to the second limb of the provision, though it is six months from the end of the month, in which, the Commissioner (Appeals) has received the Appeal, in the instant case, the proviso to Section 275 (1)(a) would be attracted and the period would be one year from the date on which, the order is passed by the Commissioner (Appeals). 12. The petitioners have preferred the Appeals before the CIT (A) on 01.02.2017, and at that time, when the impugned penalty notices were issued, the Appeals were pending. Therefore, it is clear that....