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Section 275 of the Income-tax Act, 1961 - Penalty - Bar of imposition - Assessment year 2001-02 - Assessing Officer disallowed expenditure claimed by assessee and, consequently, initiated penalty proceedings under section 271(1)(c) and same was confirmed by Commissioner (Appeals) - Tribunal also confirmed same on 11-8-2008 - Subsequently, on 26-2-2009, Assessing Officer levied penalty on ground that assessee had furnished incorrect particulars of income - Impugned penalty was confirmed by Commissioner (Appeals) - On appeal, Tribunal deleted penalty on ground that impugned penalty was imposed beyond period of limitation prescribed under section 275(1)(a) - Whether proviso to section 275(1)(a) does not nullify availability to Assessing Officer of period of limitation of six months from end of month when order of Tribunal is received by Assessing Officer - Held, yes - Whether, since order passed by Assessing Officer was within period of six months from order of Tribunal it was within limitation - Held, yes [In favour of revenue] FACTS The assessee-company claimed certain expenditure. The Assessing Officer disallowed the same and, consequently, penalty proceedings under section 271(1)(c) were initiated, same was confirmed by the Commissioner (Appeals). The Tribunal also confirmed penalty on 11-8-2008. Subsequently, on 26-2-2009, the Assessing Officer levied penalty under section 271(1)(c ) on ground that the assessee had furnished incorrect particulars of income, impugned penalty was confirmed by the Commissioner (Appeals). On appeal, the Tribunal quashed the penalty on ground that same was imposed beyond the period of limitation prescribed under section 275(1)(a). On appeal: HELD From a plain reading of the relevant sections, it is clear that the period of six months provided for imposition of penalty under section 275(1)(a) starts running after the successive appeals from an assessment order has been finally decided by the Commissioner (Appeals) or the Tribunal as the case may be whichever period expires later. The proviso to section 275(1)(a ) has only had the effect of extending the period of imposing penalty from six months to one year within the receipt of…

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