2023 (7) TMI 1634

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....ICE The appeals arise from an order of the Tribunal which reversed the order of the First Appellate Authority and restored that of the Original Authority imposing penalty. 2. The question of law arising in the above case is re-framed as follows: Whether in the facts and circumstances of the case, the Tribunal was right in upholding the order of penalty issued by the Original Authority; which was beyond the limitation period prescribed under the proviso to Section 275(1)(a) of the Income Tax Act? 3. The brief facts to be noticed are that in the Assessment Years 1995-1996 and 1996-1997, on allegations of scam with respect to transactions in Bitumen, lifted from oil companies, the carriage contractors were proceeded against f....

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....which alters the limitation is the short ground of the appellant. 5. Section 275(1)(a) provides that when an order passed in an assessment year is appealed before the First Appellate Authority or the Appellate Tribunal, no order of penalty shall be imposed after the expiry of the financial year in which the proceedings in the course of which action for imposition of penalty has been initiated are completed or six months from the end of the month in which the order of the Appellate Authority is received by the Principal Chief Commissioner or Chief Commissioner, whichever period expires later. Hence, when an appeal is filed from an order in an assessment year, which could also lead to imposition of penalty, then the Officer imposing the pe....