88[Bar of limitation for imposing penalties.
275. 89[(1)] No order imposing a
penalty under this Chapter shall be passed—
90[(a) in
a case where the relevant assessment or other order is the subject-matter of an
appeal to the 91[***] Commissioner
(Appeals) under section 246 92[or section 246A] or an appeal to the Appellate Tribunal
under section 253, after the expiry of the
financial year in which the proceedings, in the course of which action for the
imposition of penalty has been initiated, are completed 93, or six months from the
end of the month in which the order of the 94[***] Commissioner
(Appeals) or, as the case may be, the Appellate Tribunal is received by the
Chief Commissioner or Commissioner, whichever period expires later :
95[Provided
that in a case where the relevant assessment or other order is the
subject-matter of an appeal to the Commissioner (Appeals) under section 246 or section 246A,
and the Commissioner (Appeals) passes the order on or after the 1st day of
June, 2003 disposing of such appeal, an order imposing penalty shall be passed
before the expiry of the financial year in which the proceedings, in the course
of which action for imposition of penalty has been initiated, are completed, or
within one year from the end of the financial year in which the order of the
Commissioner (Appeals) is received by the Chief Commissioner or Commissioner,
whichever is later;]
(b) in a case where the relevant assessment or
other order is the subject-matter of revision under section
263 95[or section 264], after the expiry of six months from the
end of the month in which such order of revision is passed;
(c) in any other case, after the expiry of the
financial year in which the proceedings, in the course of which action for the
imposition of penalty has been initiated, are completed, or six months from the
end of the month in which action for imposition of penalty is initiated,
whichever period expires later.]
96[(1A) In a case where the
relevant assessment or other order is the subject-matter of an appeal to the
Commissioner (Appeals) under section 246 or section 246A or an appeal to the Appellate Tribunal
under section 253 or an appeal to the High Court
under section 260A or an appeal to the Supreme
Court under section 261 or revision under section 263 or section 264
and an order imposing or enhancing or reducing or cancelling penalty or
dropping the proceedings for the imposition of penalty is passed before the
order of the Commissioner (Appeals) or the Appellate Tribunal or the High Court
or the Supreme Court is received by the Chief Commissioner or the Commissioner
or the order of revision under section 263 or section 264 is passed, an order imposing or enhancing
or reducing or cancelling penalty or dropping the proceedings for the
imposition of penalty may be passed on the basis of assessment as revised by
giving effect to such order of the Commissioner (Appeals) or, the Appellate
Tribunal or the High Court, or the Supreme Court or order of revision under section 263 or section 264:
Provided that no order of imposing
or enhancing or reducing or cancelling penalty or dropping the proceedings for
the imposition of penalty shall be passed—
(a) unless the assessee has been heard, or has
been given a reasonable opportunity of being heard;
(b) after the expiry of six months from the end
of the month in which the order of the Commissioner (Appeals) or the Appellate
Tribunal or the High Court or the Supreme Court is received by the Chief
Commissioner or the Commissioner or the order of revision under section 263 or section 264
is passed:
Provided further that the provisions
of sub-section (2) of section 274 shall apply in
respect of the order imposing or enhancing or reducing penalty under this
sub-section.]
97[(2) The provisions
of this section as they stood immediately before their amendment by the Direct
Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to
any action initiated for the imposition of penalty on or before the 31st day of
March, 1989.]
98[Explanation.—In computing the period of
limitation for the purposes of this section,—
(i) the time taken in giving an opportunity to
the assessee to be reheard under the proviso to section
129;
(ii) any period during which the immunity granted
under section 245H remained in force; and
(iii) any period during which a proceeding under
this Chapter for the levy of penalty is stayed by an order or injunction of any
court,
shall be excluded.]]
