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2016 (3) TMI 366 - AT - Income TaxPenalty u/s 271(1)(c) - time limit to levy penalty - Held that:- The penalty order under section 271(1)(c) of the Act ought to be passed before 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 order of the CIT(A) or the Tribunal is received by the Chief Commissioner or the CIT. In other words, in the present case, the proceedings given rise to the penalty were completed on 15.7.1997 when the CIT(A) has passed the order. This order has been given effect on 29.9.1999. Meaning thereby, the order must have been received by the authorities. The time limit to pass the penalty order in this case was before 31.3.2000, because the date of 29.9.1999 falls within the financial year started from 1.4.1999 and ends on 31.3.2000. Other time limit could be six months from the date of receipt of the order, that has also expired. Even for abundant precaution, we observe that in case on re-verification at the end of the A|O it emerges out that the penalty is within the limitation and there is some communication gap between mentioning of these dates, then, the Revenue will be at liberty to approach the Tribunal to recall this order. Such an application should be filed within the time limit available under the Income Tax Act. With the above remarks, the appeal of the assessee is allowed and penalty is deleted. - Decided in favour of assessee
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