Section 158BFA, read with section 158BD and section 158BC of the Income-tax Act, 1961 - Block assessment in search cases

IT: Where Assessing Officer after issuance of notice did not complete penalty proceedings within prescribed period of limitation and further issued same notice afresh and levied penalty, said penalty order would be considered bad in law
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[2014] 52 taxmann.com 465 (Chennai - Trib.)
IN THE ITAT CHENNAI BENCH 'D'
Smt. G. Akila
v.
Deputy Commissioner of Income-tax*
DR. O.K. NARAYANAN, VICE-PRESIDENT
AND VIKAS AWASTHY, JUDICIAL MEMBER
IT (SS) APPEAL NO. 13 (MDS.) OF 2013
[BLOCK ASSESSMENT YEARS 1991-92 TO 2000-01 AND 2001-02]
FEBRUARY  11, 2014
Section 158BFA, read with section 158BD and section 158BC of the Income-tax Act, 1961 - Block assessment in search cases - Levy of interest and penalty in certain cases (Period of limitation) - Block assessment years 1991-92 to 2000-01 and part of 2001-02 - Whether after issuance of notice, revenue ought to have completed penalty proceedings within period prescribed under Act without waiting for assessee to file appeal against said assessment order beyond period of limitation - Held, yes - Whether second notice issued under section 158BFA(2) does not confer any power to revenue to de novo penalty proceedings against assessee as statutory time limit provided under Act cannot be enlarged with issuance of fresh notice - Held, yes [Paras 9, 10 and 11] [In favour of assessee]