2024 (2) TMI 1282

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....ee") for the assessment year 2016-17, assessee preferred this appeal. 2. Brief facts of the case are that the assessee was running a hospital in the name and style of "New Life Hospitals", till 31/10/2015, and subsequently for their own reasons, they leased it out to Thumbey Hospital India Pvt. Ltd. with effect from 03/11/2015. It filed return of income on 17/10/2016 for the assessment year 2016-17 declaring an income of Rs. 86,90,973/-. Subsequently, it revised the same on 08/11/2017, declaring the income of Rs. 33,64,220/-. In the original return of income the assessee considered the entire lease rent amounting to Rs. 1,87,50,000/- as business income claiming full depreciation on the assets, including building and equipment for the ent....

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....ssed beyond the time prescribed under section 275 of the Act and, therefore, it is bad under law. It is also contended that there is no concealment of income and, therefore, mere disallowance of the claim will not result in levy of penalty. Lastly learned AR contended that law does not permit passing two penalty orders by the learned Assessing Officer, because with passing of the first penalty order the learned Assessing Officer becomes functus officio and, therefore, the second penalty order is nonest in the eye of law. 6. Learned DR submitted that insofar as the objection based on section 275 of the Act is concerned, section 275 of the Act says that the order under section 271(1)(c) of the Act has to be passed before the expiry of the ....

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....ncipal Chief Commissioner or Commissioner, whichever period expires later. In this case, the Tribunal passed the orders on 24/03/2021 and by 31/03/2021, the financial year ends or by the end of September, 2022, six months expires from the end of the month in which the order by the Appellate Tribunal was passed. There is evidence to justify the action of the learned Assessing Officer in passing the current impugned order dated 01/04/2022. On this score, Revenue has no case. 8. Coming to the second objection, we are in agreement with the learned AR that whether or not subsequently cancelled by the learned CIT(A), with the passing of the first penalty order by 13/08/2021 within six months from the end of the month in which the Appellate Tri....