TMI Blog2007 (9) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... . Dabholkar, J.-1. This is an appeal under Section 260-A of the Income Tax Act 1961 ("The Act" for brevity's sake), challenging the judgment and order passed by the Income Tax Appellate Tribunal, Pune Bench, Pune ("ITAT" for brevity's sake) in Income Tax Appeal No.1343/PN/01, on 22.3.2004. 2. The following factual details are necessary for the purpose of decision of present appeal. 3. Assessment of taxable income of Respondent for the assessment year 1996-97 (Financial Year 1995-96) was carried out by the departmental authorities and concluded with assessment order dated 30.3.1999. The Assessing Officer-DCIT (Investigation), Circle-II, Jalgaon, during the course of assessment, noticed that the assessee had accepted loans/deposits e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed affidavit-cum-notes of arguments, wherein he has raised preliminary objections, by relying upon instruction circular No.2 of 2005, dated 24 th October 2005 and has pleaded that since the limit of appeal under Section 260-A of the Act to be preferred is raised to Rs.4.00 lacs and tax effect of present matter does not exceed Rs.4.00 lacs, the department ought not to pursue the present appeal. This submission was opposed by learned Asstt. Solicitor General, by contending that the instructions are issued on 24.10.2005 and are prospective in nature, whereas present appeal was filed by the department in August-2004. According to learned Asstt. Solicitor General, therefore, the appeal does not fall within the clutches of the instructions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itor General is justified in contending that the circular is applicable only prospectively and it makes no reference to pending matters. Considering applicability of the circular dated 24.10.2005 on the basis of its text, we would not be inclined to follow the view taken by other Division Bench, regarding earlier circular. 12. Otherwise also, paragraph 3 of this circular itself saves certain appeals from being obstructed due to financial limits. Paragraph 3 reads; ". The Board has also decided that in cases involving substantial question of law of importance as well as in cases where the same question of law will repeatedly arise, either in the case concerned or in similar cases, should be separately considered on merits without bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e penalty proceedings to be germinating from some other proceedings already in progress. The date of termination of those proceedings is important and the last date of financial year in which those proceedings were completed, is the outer limit for conclusion of penalty proceedings. 16. In the matter at hands, the penalty proceedings arise out of assessment of income of the assessee for financial year 1995-96 (assessment year 1996-97). It has come in the order of the CIT (Appeals) that the assessment order was dated 30.3.1999. Thus, the assessment proceedings are concluded on 30.3.1999 i.e. within financial year 1998-99, corresponding assessment year being 1999-2000. Consequently, penalty cold have been imposed latest by 31.3.1999, sin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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