Bar of limitation for imposing penalty
228. (1) No order imposing a penalty under this Chapter shall be passed after the expiry of one year from the end of the financial year in which the notice for imposition of penalty issued under section 227.
(2) An order imposing, or dropping the proceedings for imposing, the penalty under this Chapter may be revised, or revived, as the case may be, on the basis of assessment of the tax base, as revised after giving effect to the order of Commissioner (Appeals), Appellate Tribunal, the National Tax Tribunal or the Supreme Court or order of revision under section 194.
(3) An order revising the penalty under sub-section (2) shall not be passed after the expiry of six months from the end of the month in which order of the Commissioner (Appeals), the Appellate Tribunal, National Tax Tribunal or the Supreme Court is received by the Chief Commissioner or the Commissioner or the order of revision under section 194 is passed.
(4) In computing the period of limitation for the purposes of this section, the following time or period shall not be included:-
(a) the time taken in giving an opportunity to the assessee to be reheard under section 137;and
(b) any period during which a proceeding under this Chapter for the levy of penalty is stayed by an order, or injunction, of any court.
