1980 (2) TMI 32

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....handigarh Bench, vide order dated June 23, 1975, has referred the following two questions (question No. 1 at the instance of the revenue and question No. 2 at the instance of the assessee) to this court under s. 256(1) of the I.T. Act, 1961 (hereinafter called " the Act ") : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Inspe....

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....s. 1,000. The assessment order was later on rectified by the ITO on April 27, 1970, so as to reduce the total income to Rs. 10,738. The IAC, after hearing the assessee, imposed a penalty of Rs. 16,000 under s. 271 (1)(iii) of the Act, vide order dated March 4, 1972. This order was challenged by the assessee by way of appeal before the Appellate Tribunal on two grounds, namely, that the penalty ord....

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....n the proceedings in which the penalty notice was issued were concluded on February 9, 1970. The order imposing the penalty was passed on March 4, 1972. The limitation for imposing the penalty is contained in s. 275(b) of the Act. When the notice was issued the said clause provided that the penalty could be imposed within two years of the date of the final order in the assessment proceedings in wh....

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....d that s. 275 of the Act which provides the time limit within which proceedings for imposition of penalty had to be completed, was amended by the Taxation Laws (Amendment) Act, 1970, with effect from April 1, 1971, and after its amendment the penalty proceedings could be completed within two years of the completion of the financial year in which the penalty proceedings were initiated because the s....