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2018 (2) TMI 1533 - HC - Income TaxPenalty u/s 271(1)(c) - period of limitation - Held that:- The dependence of the period of the limitation upon whether an order becomes final at the instance of one party, i.e. that filing and prosecution or withdrawal of an appeal (by one party or the other) would be, in the opinion of the Court one such event which leaves the legal position inchoate and unsatisfactory. Instead, an interpretation that permits certainty should be adopted. CIT’s order provided a fixed date from which to reckon the end of the period of limitation–some time in early July 1994. The absence of an appeal by the assessee (against the CIT(A)’s appellate adjudicatory order) meant that at least with respect to the amount that it had accepted in the adjudicatory order as an addition, the penalty proceedings survived. As far as the other issue was concerned, perhaps there was no occasion for a further penalty proceeding given that the issue might have been rendered debatable, even in the eventuality of an order favouring the revenue. As far as deletion was concerned, the assessee definitely was not aggrieved. It was incumbent upon the revenue to complete the penalty proceedings and pass order within the six months period. It did not. Its reliance upon the crutches of a non-appeal, which is what its effort at appeal to the ITAT eventually became in the present case, could not have been legitimately upheld as was done by the impugned order. - Decided in favour of the assessee
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