Income Tax Act, 2025
Section 20: Subs by s. 3, ibid, for “Deputy Commissioner” (w.e.f. 11998).
20. Subs by s. 3, ibid, for “Deputy Commissioner” (w.e.f. 11998).
21. Subs. by Act 4 of 1988, s. 115, for sub-section (3) (w.e.f. 11987). Earlier it was amended by Act 29 of 1977, s. 19
(w.e.f. 101978).
798
1[275. Bar of limitation for imposing penalties.—2[(1)] No order imposing a penalty under this
Chapter shall be passed—
3[(a) in a case where the relevant assessment or other order is the subject-matter of an appeal to
the 4*** Commissioner (Appeals) under section 246 5[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, or six months
from the end of the month in which the order of the 4*** Commissioner (Appeals) or, as the case may
be, the Appellate Tribunal is received by the 6[Principal Chief Commissioner or Chief Commissioner]
or 7[Principal Commissioner or Commissioner], whichever period expires later:
8[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 6[Principal Chief Commissioner or Chief Commissioner] or 7[Principal 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 8[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.]
9[(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 6[Principal Chief Commissioner or Chief Commissioner] or the 7[Principal
Commissioner or 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
(w.e.f. 11987). Earlier it was amended by Act 29 of 1977, s. 19
(w.e.f. 101978).
798
1[275. Bar of limitation for imposing penalties.—2[
in a case where the relevant assessment or other order is the subject-matter of an appeal to
the 4*** Commissioner
under section 246 5[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, or six months
from the end of the month in which the order of the 4*** Commissioner
or, as the case may
be, the Appellate Tribunal is received by the 6[Principal Chief Commissioner or Chief Commissioner]
or 7[Principal Commissioner or Commissioner], whichever period expires later:
8[Provided that in a case where the relevant assessment or other order is the subject-matter of an
appeal to the Commissioner
under section 246 or section 246A, and the Commissioner
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
is received
by the 6[Principal Chief Commissioner or Chief Commissioner] or 7[Principal Commissioner or
Commissioner], whichever is later;]
in a case where the relevant assessment or other order is the subject-matter of revision
under section 263 8[or section 264], after the expiry of six months from the end of the month in which
such order of revision is passed;
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.]
9[
In a case where the relevant assessment or other order is the subject-matter of an appeal to the
Commissioner
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
or the Appellate Tribunal or the High Court or the Supreme
Court is received by the 6[Principal Chief Commissioner or Chief Commissioner] or the 7[Principal
Commissioner or 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