PR. COMMISSIONER OF INCOME TAX-9 vs. THE NATIONAL SMALL INDUSTRIES CORP. LTD
What did the High Court hold?
The Tribunal held that the penalty order was time-barred. The Court found that the notice was issued almost 25 years beyond the limitation period prescribed by Section 275(A)(ii).
What were the facts?
The Revenue initiated penalty proceedings under Section 274. The ITAT had previously made an order on 16.12.1987, which the Revenue claimed was the starting point for limitation. The notice for penalty was issued on 10.10.2012.
What were the issues?
The key issue was whether the penalty order was within the time limit prescribed by the Income Tax Act, considering the previous orders of the Tribunal and the High Court.
Which sections of the Income-tax Act were involved?
Section 274,Section 275(A)(ii),Section 260A
AI-generated summary — verify with the full judgment below
$~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 786/2017
PR. COMMISSIONER OF INCOME TAX-9 ..... Appellant Through: Mr. Zoheb Hossain, Senior Standing Counsel.
versus
THE NATIONAL SMALL INDUSTRIES CORP. LTD ..... Respondent Through: Mr. M.P. Rastogi and Mr. K.N. Ahuja, Advs.
CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA
O R D E R %
29.01.2018
The question sought to be urged by the Revenue in its appal under Section 260A of the Income Tax Act, 1961 (‘the Act’) is whether the finding of the Income Tax Appellate Tribunal (ITAT) that the penalty order was time barred in the circumstances of the case is correct.
The Revenue initiated penalty proceedings through notice under Section 274 on 29.10.2012. It contends that it received the notice on 10.10.2012, having previously received the order of ITAT on 19.4.2012 (that order was made on 19.10.2011). It is stated therefore, that the penalty order under Section 271(1)(c) fulfilled the stipulation in Section 275(A)(ii).
The relevant provision i.e. Section 275(A)(ii) provides an outer limit of six months from the end of the month, in which the order of Dy. Commissioner (Appeals), Commissioner (Appeals) or Appellate Tribunal is received by the Chief Commissioner or the Commissioner, “whichever period expires later”. In the present case, the assessment was completed on 25.1.1983; The CIT(A) made its order on 3.3.1984. The ITAT rejected the assessee’s appeal on 20.11.1986, which resulted in a reference to this Court under Section 256, - through an order of 16.12.1987. That reference was answered on 22.1.2008. This Court notices that so called order of 19.10.2011, which the Revenue relies upon in this case, was merely an intimation that a reference to this Court under Section 256 was answered. Thus, the order of ITAT, which provided the outer limit as starting and end point of limitation in this case, was undoubtedly made on 16.12.1987. Notice in this case was issued on 10.10.2012 – way beyond the period of limitation by almost 25 years. The appeal has no merit and is consequently, dismissed.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J JANUARY 29, 2018 rc
More judgments on Section 274
- Shamsunder Pritesh Malode, Hyderabad vs ACIT, Circle-12(1), HyderabadITA 399/HYD/2026[2020-21]Status: Disposed16 Oct 2026AY 2020-21
- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 2128/MUM/2025[2022-23]Status: Disposed16 Oct 2026AY 2022-23
- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 4558/MUM/2023[2021-22]Status: Disposed16 Oct 2026AY 2021-22
- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 3228/MUM/2023[2020-21]Status: Disposed16 Oct 2026AY 2020-21
- Assistant Commissioner of Income Tax… vs Harshit Singhania Buildcon, RaipurITA 560/RPR/2026[2022-23]Status: Disposed14 Oct 2026AY 2022-23
Recent GST High Court judgments
Search GST case law →- M/S Sita Enterprises vs. Office Of The CommissionerUttarakhand · 26 Oct 2026
- Capri Global Capital LTD Through Represented By Its Law Officer Mr. Varun Kaljoria vs. The State Of Madhya Pradesh Through Principal SecretaryMadhya Pradesh · 26 Oct 2026
- Sri Tatiparthy Venkata Swamy vs. The State Of Andhra PradeshAndhra Pradesh · 25 Oct 2026
- Piyush Shantilal Veera vs. State Of U.P.Allahabad · 23 Oct 2026
- Tvl. Pooja Shri Traders vs. The Deputy State Tax Officer - 1Madras · 23 Oct 2026