TaxTMI 
TaxTMI 
2018 (7) TMI 1819
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....n 271(1)(c) of the Income Tax Act, 1961 dated 14.09.2017. By the impugned notice, the respondent has called upon the petitioner to show-cause as to why the penalty under Section 271(1)(c) of the Act be not levied and if he does not respond to the penalty order, an order imposing penalty would be passed. 3. Since the petitioner has filed appeals before the Commissioner of Income Tax (Appeals) as against the Assessment Orders, he requested the respondent to keep the penalty proceedings in abeyance. However, such request made to the respondent was not accepted. Therefore, the petitioner has moved this Court. 4.The learned counsel for the petitioner referred to a decision of this court in W.P.Nos.31021 to 31027 of 2017 dated 25.01.2018, w....
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....and perusing the materials placed on record, the issue, which falls for consideration, is as to whether the impugned notices issued by the respondent are time barred and whether the respondent could have issued the impugned notices at this juncture or not. 8. Section 275 of the Income Tax Act deals with bar of Limitation for imposing penalties, and the said provision read as follows :- "13[(1)] Bar of Limitation for imposing penalties- No order imposing a penalty under this Chapter shall 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 sec....
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....six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later.] (1A) In a case where the relevant assessment or other order is the subject matter of an appeal to the Commissioner (Appeals) under section 246 or section 246A or an appeal to the Appellate Tribunal under section 253 or an appeal to the High Court under section 260A or an appeal to the Supreme Court under section 261 or revision under section 263 or section 264 and an order imposing 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 ....
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....period stipulated in the second time limit is until the expiry of six months from the end of the month, in which, the order of the CIT (A), in respect of appeals received by the Commissioner of Income Tax or Principal Commissioner of Income Tax. 11. Thus, the time limit as per the second limb is six months from the end of the month, in which, the order of Commissioner (Appeals) is received. So far as the petitioner in W.P.No.31217 of 2017 is concerned, the relevant assessment year is 2011-12 and the order of assessment under 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. Accord....
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....andel Oils Pvt., Ltd. (supra), does not render any support to the case of the respondent. 14. Thus, the impugned penalty notices having issued well beyond the period of limitation fixed in the first limb of Section 275(1) (a) of the Act, are held to be barred by limitation. However, the respondent is at liberty to initiate penalty proceedings after the order is passed by the CIT (A) before whom the matters are pending. 15. In the result, these Writ Petitions are allowed, the impugned notices are directed to be kept in abeyance with liberty to the respondent to initiate `fresh proceedings after the disposal of the Appeals by the Commissioner of Income Tax (Appeals), which have been preferred against the orders of assessment....