TaxTMI 
TaxTMI 
2026 (8) TMI 1666
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....rit appeals arise from the impugned orders passed by the learned Single Judge in W.P.Nos.19076/2025, 19210/2025 and 20063/2025 dated 18.09.2025. The writ petitions were filed seeking to quash, insofar as the writ petitioner is concerned, the impugned penalty orders and demand notices passed under Section 271DA of the Income Tax Act, 1961, dated 23.05.2025 and 26.05.2025. 2. As could be seen from the impugned orders, the learned Single Judge proceeded to allow the writ petitions on the ground of limitation, having regard to a decision of a co-ordinate Bench in the case of Prl. Commissioner of Income Tax Vs. K. Umesh Shetty (2025) 170 Taxmann.com 748 (Karnataka). The learned Single Judge has held that the learned Counsel for the respondent....
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....his Court is drawn to a decision of the Apex Court in the case of Official Liquidator Vs. Dayanand & Ors. 2008 (10) SCC 1 where the Hon'ble Supreme Court has clearly held that judicial discipline if not followed by the Judges, then the litigant public and the lawyers will be in a dilemma in the matter of following the judgments of the courts, if there are divergent opinions. Nevertheless, the learned Senior Counsel would submit that notwithstanding the said submission, going by the decision of another co-ordinate bench in the case of Ganesh Agarwal, as stated in the concluding paragraphs, viz., 63 (iv), if the position of law is stated to be that the period of six months would begin from the end of the month in which the proposal/refere....
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....limbs provided and the first limb being that in any other case, 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, the cause of action would commence from the date when the Assessing Officer passes the order. The case on hand falls under the first limb. 7. Learned Senior Counsel submitted that in the present case, the assessment order was passed on 18.03.2024 and 24.03.2024 and the financial year for the assessment year came to an end on 31.03.2024 and six months therein would end on 30.09.2024. However, the show cause notice was issued on 12.12.2024, long after the period of six months elapsed, even in terms of the law laid down by th....
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....mesh Shetty, nevertheless having regard to the admitted facts of this case, there cannot be a different conclusion than what was arrived at by the learned Single Judge. 9. The co-ordinate Bench, in the case of Umesh Shetty held that the date of reference by the Assessing Officer shall be the point of commencement for completing limitation under Section 275 of the Act. On the other hand, another co-ordinate Bench in the case of Ganesh Agarwal has held that limitation under Section 275(1)(c) of the Act, commences only from the date of issuance of show cause notice under Section 274 of the Act by the Joint Commissioner of Income Tax. In the present case, as rightly submitted by the learned Senior Counsel for the respondent, the order of ass....