2026 (3) TMI 1762

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....nt appeal is that the penalty order dated 23.11.2021 passed by the learned Assessing Officer is barred by limitation in terms of the provisions contained in section 275 of the Act, and therefore the said penalty order deserves to be quashed as void ab initio. Since the issue relating to limitation strikes at the very root of the jurisdiction of the Assessing Officer to impose penalty, the same has been raised as the primary ground before this Tribunal. 2. The brief facts giving rise to the present controversy are that the assessee, being an individual, filed his return of income declaring total income of Rs.14,31,583 on 10.08.2013. The original assessment came to be completed under section 143(3) on 14.11.2014 determining the total incom....

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....21 holding that the assessee had furnished inaccurate particulars of income. 5. Since the assessee did not prefer any appeal against the reassessment order, the limitation for passing the penalty order falls within the ambit of section 275(1)(c) of the Act. In order to appreciate the controversy relating to limitation, the relevant statutory provision contained in section 275 is reproduced hereunder: "275(1) 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 or section 246A or an appeal to the Appellate Tribunal under section 253, after the expiry of the financial yea....

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....order to appreciate the application of the aforesaid statutory provision to the facts of the present case, the chronology of events emerging from the record is reproduced hereunder: Sr. No. Particulars Date 1. Notice issued under section 148 / Reassessment proceedings initiated 31.03.2019 2. Reassessment order passed under section 147 r.w.s. 143(3) 30.12.2019 3. Penalty proceedings initiated under section 271(1)(c) 30.12.2019 4. End of month in which penalty proceedings initiated 31.12.2019 5. Six months from end of month of initiation 30.06.2020 6. Extended limitation under TOLA and CBDT Circulars 30.09.2021 7. Penalty order actually passed 23.11.2021 8. From the af....

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....ted to justify the delay by placing reliance upon the orders passed by the Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No.3 of 2020 whereby limitation periods were extended during the pandemic. However, in our considered opinion, the said contention cannot be accepted in the factual context of the present case. The orders passed by the Hon'ble Supreme Court were primarily intended to extend limitation in respect of judicial and quasi-judicial proceedings before courts and tribunals during the pandemic period. In contrast, the limitation governing the passing of penalty orders under the Income Tax Act is specifically regulated by the statutory framework contained in section 275 read with the relaxations granted under TOLA and the....