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2016 (10) TMI 543 - ITAT MUMBAILimitation period on levy of penalty u/s 271(1)(c) - Held that:- Hon’ble Madras High Court in the case of Rayala Corporation vs. UOI (2006 (4) TMI 96 - MADRAS High Court ) held that, in case where appeal against assessment order was pending before the Tribunal, then in such a situation, the limitation period on levy of penalty would be 6 months from the end of the month in which the order of the Tribunal received by the AO. The aforesaid decisions will allay the fear of the revenue regarding limitation issue for passing of the penalty order. Before us, the revenue has not brought any contrary decision to what has been laid down by the Hon’ble Gujarat High Court. Thus, on the facts of the present case, we direct the AO to keep the penalty proceedings in abeyance concurrently for the period of 6 months or till the passing of the order by this Tribunal, whichever is earlier. On the next date of hearing both the parties shall ensure that, hearing of the appeal is taken on peremptorily basis.
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