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2021 (2) TMI 280 - AT - Income TaxPenalty u/s 271E - validity of the order passed u/s 271E on the reasoning that it is barred by limitation - Change in jurisdiction of the Income Tax Office - HELD THAT:- In the case on hand there was change in the jurisdiction of the Income Tax Office under the provisions of section 129 of the Act from central range to range 3 Baroda. The assessee, on change of jurisdiction, requested for rehearing the case as provided in the proviso to section 129 of the Act vide letter dated 27-11-2003 which came to be concluded on 06-05-2004. Effectively, the time of 162 days was consumed in the rehearing of the case of the assessee. Accordingly, such time has to be excluded as per the explanation attached to section 275 of the Act which has been discussed here in above. The time limit for passing the order was expiring on 30 September 2003 under the provisions of clause (c) to section 275 of the Act but the same needs to be extended for another 162 days as per the explanation provided in section 275 of the Act. Thus, after considering such time, the time limit expired for passing the order as on 11-05-2004 but the AO has passed the penalty order dated 18-05-2004 which is delayed by 7 days. Accordingly we are of the view that the order passed by the AO under section 271E imposing the penalty upon the assessee is not sustainable as it is barred by time. Consequently, we quash the same. Hence the ground of appeal of the assessee is allowed.
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