Ita/141/2012 Of Parisons Roller Flour Mills Pvt Ltd v. Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 142 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 128/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 12-04-2012 APPELLANT: PARISONS ROLLER FLOUR MILLS PVT LTD6/1183, CHEROOTTY ROAD, KOZHIKODE 673 032. BY ADVS.SRI.P.GOPINATH (SR.)SRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMASSMT.PREETHA S.NAIR RESPONDENT:COMMISSIONER OF INCOME TAXCENTRAL REVENUE BUILDING, I S PRESS ROAD, KOCHI-682018. OTHER PRESENT: SRI P.K.R.MENON SR COUNSEL,GOI TAXES, JOSE JOSEPH,SC THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.133/2012, ITA.141/2012, ITA.157/2012, ITA.158/2012, ITA.159/2012, ITA.160/2012, THECOURT ON THE SAME DAY DELIVERED THE FOLLOWING: ::2:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 133 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 125/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT.LTD6/1183, CHEROOTTY ROAD, KOZHIKODE- 673 032 BY ADVS.SRI.P.GOPINATH (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMAS RESPONDENT/S: COMMISSIONER OF INCOME TAXKOCHI. CENTRAL REVENUE BUILDING, I S PRESS ROAD, BY ADVS.SRI.P.K.RAVINDRANATHA MENON (SR.)SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.160/2012, ITA.159/2012, ITA.157/2012, ITA.141/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.157/2012, ITA.141/2012, THE COURT ON THE SAME DAY ITA Nos.142/2012 and con.cases ::3:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 141 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 127/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 12-04-2012 APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT LTD.6/1183, CHEROOTTY ROAD, KOZHIKODE. BY ADVS.SRI.P.GOPINATH (SR.)SRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMASSMT.PREETHA S.NAIR RESPONDENT/S: COMMISSIONER OF INCOME TAXKOCHI-682018. CENTRAL REVENUE BUILDING, I S PRESS ROAD, THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.160/2012, ITA.159/2012, ITA.157/2012, ITA.133/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.157/2012, ITA.133/2012, THE COURT ON THE SAME DAY ITA Nos.142/2012 and con.cases ::4:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 157 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 126/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 09-03-2012 APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT. LTD.6/1183, CHEROOTTY ROAD, KOZHIKODE 673 032. BY ADVS.SRI.P.GOPINATH (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMAS RESPONDENT/S: COMMISSIONER OF INCOME TAX,KOCHI. CENTRAL REVENUE BUILDING, I S PRESS ROAD, THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.160/2012, ITA.159/2012, ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY ::5:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 158 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 129/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT. LTD6/1183,CHEROOTTY ROAD, KOZHIKODE . RESPONDENT/S: COMMISSIONER OF INCOME TAX,KOCHI. CENTRAL REVENUE BUILDING, I S PRESS ROAD, THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.160/2012, ITA.159/2012, ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY ::5:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 158 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 129/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT. LTD6/1183,CHEROOTTY ROAD, KOZHIKODE . BY ADVS.SRI.P.GOPINATH (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMAS RESPONDENT/S: COMMISSIONER OF INCOME TAX,CENTRAL REVENUE BUILDING, IS PRESS ROAD KOCHI.682 018. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.142/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA Nos.142/2012 and con.cases ::6:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 159 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 130/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 09-03-2012 APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT. LTD.6/1183,CHEROOTTY ROAD, KOZHIKODE -673032. BY ADVS.SRI.P.GOPINATH (SR.)SRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMASSMT.PREETHA S.NAIR RESPONDENT/S: COMMISSIONER OF INCOME TAXCENTRAL REVENUE BUILDING , IS PRESS ROAD KOCHI. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.160/2012, ITA.157/2012, ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ::7:: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON FRIDAY ,THE 01ST DAY OF FEBRUARY 2019 / 12TH MAGHA, 1940 ITA.No. 160 of 2012 AGAINST THE ORDER/JUDGMENT IN ITA 131/2010 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 09-03-2012 APPELLANT/S: PARISONS ROLLER FLOUR MILLS PVT. LTD.6/1183, CHEROOTTY ROAD, KOZHIKODE. BY ADVS.SRI.P.GOPINATH (SR.)SRI.K.JOHN MATHAISRI.M.GOPIKRISHNAN NAMBIARSRI.P.BENNY THOMASSMT.PREETHA S.NAIR RESPONDENT/S: COMMISSIONER OF INCOME TAXCENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI682 018. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01.02.2019, ALONG WITH ITA.159/2012, ITA.157/2012, ITA.141/2012, ITA.133/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ::8:: JUDGMENT [ ITA 142/2012 ,ITA.133/2012 ,ITA.141/2012,ITA.157/2012 ,ITA.158/2012,ITA.159/2012,ITA.160/2012 ] Vinod Chandran, J. The appeals relate to seven years from1998-99 to 2004-05. The appellant manufactures andsells wheat products. There was a searchconducted in the business premises leading to ablock assessment under Section 153A of the IncomeTax Act. Two discrepancies were noticed in thesearch, one an excessive claim of wastage havingbeen made and the other income from sale of emptygunny bags having not been disclosed. We need notgo into the discrepancies and additions made onthat count, since we are concerned herein with thepenalty imposed on the basis of block assessment ITA Nos.142/2012 and con.cases carried out. 2. As to the block assessment it took its [ ITA 142/2012 ,ITA.133/2012 ,ITA.141/2012,ITA.157/2012 ,ITA.158/2012,ITA.159/2012,ITA.160/2012 ] Vinod Chandran, J. The appeals relate to seven years from1998-99 to 2004-05. The appellant manufactures andsells wheat products. There was a searchconducted in the business premises leading to ablock assessment under Section 153A of the IncomeTax Act. Two discrepancies were noticed in thesearch, one an excessive claim of wastage havingbeen made and the other income from sale of emptygunny bags having not been disclosed. We need notgo into the discrepancies and additions made onthat count, since we are concerned herein with thepenalty imposed on the basis of block assessment ITA Nos.142/2012 and con.cases carried out. 2. As to the block assessment it took its regular course before the appellate authority, theTribunal as also this Court. The matter standsfinalised in Annexure F judgment of this Court.With respect to sale of gunny bags, no interferencewas caused to the addition made. On the claim ofwastage this Court has made a modification reducingthe liability of the assessee from that fixed bythe Assessing Officer. This Court fixed the wastageat 2% which has acquired finality. The issue hereinis with respect to the penalty imposed underSection 271(1)(c) of the Income Tax Act, 1961. 3. The questions of law raised as seen inthe memorandum of appeal are extracted hereunder:- 1. Whether on the facts and circumstances of the case the Hon'ble Tribunal was justified in directing the assessingofficer to re-work the quantum of penalty ::10:: in terms of the order of the Hon'ble HighCourt? 2. Whether on the facts and circumstances of the case the Hon'ble Tribunal wasjustified in directing the assessingofficer to recompute the penalty whenthere was no clear finding of concealmentof income? 3.Whether there were materials before theappellate Tribunal to come to a conclusionthat there is a concealment of income forlevy of penalty under Section 271(1)(c) ofthe Income Tax Act?appellate Tribunal to come to a conclusionthat there is a concealment of income forlevy of penalty under Section 271(1)(c) ofthe Income Tax Act? 4. Whether on the facts and circumstancesof the case is not the order of penaltydated 31.07.2008 barred by limitation interms of the CBDT Circular reported in290 ITR(st) 86 which is binding on theassessing officer?of the case is not the order of penaltydated 31.07.2008 barred by limitation interms of the CBDT Circular reported in290 ITR(st) 86 which is binding on theassessing officer? ITA Nos.142/2012 and con.cases ::11:: 4. We would first answer question Nos. 2 and 3 which raises a challenge to the penalty orderon the ground that there was absolutely no materialto find concealment of income. We need only referto Section 271(1)(c) which not only speaks ofconcealment of particulars of income but alsofurnishing inaccurate particulars of such income.The additions made, to the extent confirmed by thisCourt, definitely leads to a finding of inaccurateparticulars having been furnished which wouldenable invocation of Section 271(1)(c). We henceanswer the said questions of law against theassessee and in favour of the Revenue. 5. On questions Nos. 1 and 4, we have tofirst address the argument of limitation raised bythe learned Counsel for the assessee. The learnedCounsel for the assessee would contend that thelimitation as provided under Section 275 has workeditself out. The learned Counsel would specifically ITA Nos.142/2012 and con.cases ::12:: 5. On questions Nos. 1 and 4, we have tofirst address the argument of limitation raised bythe learned Counsel for the assessee. The learnedCounsel for the assessee would contend that thelimitation as provided under Section 275 has workeditself out. The learned Counsel would specifically ITA Nos.142/2012 and con.cases ::12:: refer to the proviso introduced under Section275(1)(a) which applies to the orders of the FirstAppellate Authority passed after 01.06.2003. Thesame was brought in by amendment with effect from01.06.2003 as per Finance Act, 2003. By the saidproviso, an order of penalty has to be passed, incases where there is an appeal filed to the FirstAppellate Authority within the one year period fromthe end of the month in which the order of theCommissioner(Appeals) is received by the PrincipalChief Commissioner or Chief Commissioner orPrincipal Commissioner or Commissioner (viz: theDepartment). The order passed by the FirstAppellate authority is on 11.09.2006 and the orderwould have been received by the department inOctober, normally. Hence the limitation of one yearextends till 30.10.2007. The order of penalty whichis impugned herein, is after the order of the FirstAppellate Authority, and is dated 31.07.2008. The ITA Nos.142/2012 and con.cases ::13:: limitation having set in there is no question ofthe order being sustained nor is there a ground forthe Tribunal to direct the order to be revised interms of the judgment of the High Court. 6. The learned Senior Counsel, Government of India (Taxes) would however point out that theproviso as introduced in 2003, is only with respectto the limitation operating as against the firstAppellate Authority's order and otherwise the mainbody of the provision at sub-clause (a) of Section275(1) has to be relied on. 7. In adjudicating the issue we would have to extract the provision as also refer to thevarious dates. Section 275(1)(a) with the provisoreads as under: “275. Bar of limitation for imposing penalties: (1) No order imposing a penalty under this chapter shall be passed-- ::14:: (a) in a case where the relevantassessment or other order is thesubject matter of an appeal to theCommissioner(Appeals) under Section246 or Section 246A or an appeal tothe Appellate Tribunal under section253, after the expiry of thefinancial year in which theproceedings, in the course of whichaction for the imposition of penaltyhas been initiated, are completed, orsix months from the end of the monthin which the order of theCommissioner (Appeals) or, as thecase may be, the Appellate Tribunalis received by the PrincipalCommissionerorCommissioner, whichever period expires later: Provided that in a case where the relevant assessment or other order isthe subject-matter of an appeal tothe Commissioner (Appeals) underSection 246 or section 246A, and theCommissioner(Appeals) passes theorder on or after the 1[st] day of June,2003 disposing of such appeal anorder imposing penalty shall bepassed before the expiry of thefinancial year in which theproceedings, in the course of whichaction for imposition of penalty hasbeen initiated, are completed, orwithin one year from the end of thefinancial year in which the order oftheCommissioner(Appeals)isreceived by the Chief Commissioner(Appeals) is received by thePrincipal Chief Commissioner or Chief ITA Nos.142/2012 and con.cases ::16:: CommissionerorPrincipalCommissionerorCommissioner, whichever is later” 8. The assessment under Section 153A was ITA Nos.142/2012 and con.cases ::16:: CommissionerorPrincipalCommissionerorCommissioner, whichever is later” 8. The assessment under Section 153A was made on 17.03.2006. A notice under Section 271 wasalso issued on the very same date. Going by themain provision at sub-clause (a) an order ofpenalty could be passed before the expiry of thefinancial year in which the proceedings, in thecourse of which action for the imposition ofpenalty has been initiated are completed or sixmonths from the end of the month in which the orderof the Commissioner (Appeals) or the AppellateTribunal is received by the Department. Hence, ifno appeal were filed by the assessee, the time forpassing an order under Section 271 expires on31.03.2006, the last date of the financial year inwhich the original proceedings leading to thepenalty proceedings was concluded. ITA Nos.142/2012 and con.cases ::17:: 9. However, the assessee had filed anappeal in which circumstances, the limitation wouldstand extended again by virtue of clause (a) to sixmonths from the end of the month in which the Firstappellate order was received. The provisointroduced with effect from 01.06.2003, extendedthe period of limitation in passing an order underSection 271 with respect to the First AppellateOrders passed on or after 01.06.2003. It stoodextended to one year from the end of the month inwhich the First Appellate order is received. Henceas argued by the learned Counsel appearing for theassessee, the limitation expires only on31.10.2007, the First Appellate order having beenpassed on 11.09.2006 and received before end ofOctober. The learned Counsel also would arguethat there is no further chance for passing anorder of penalty since, by the introduction of theproviso,the limitation period has been ITA Nos.142/2012 and con.cases ::18:: specifically laid down as one year from the end ofthe month in which the first appellate order isreceived by the Department. 10. There can be no resort, for orderspassed after 01.06.2003, to the limitation asprovided in sub-clause (a) which again provides afurther period of six months from the end of themonth in which the order of the Appellate Tribunalis received by the Department, is the compellingargument. We are unable to countenance such anargument. Sub-clause (a) provides for a limitationinsofar as an order under Section 271 before theend of the month in which the proceedings leadingto the penalty proceedings had concluded or sixmonths from the end of the month in which the firstappellate order or the order of the AppellateTribunal is received; whichever is later. Hencewhen an assessment has resulted in a finding interalia of concealment of income or furnishing of ITA Nos.142/2012 and con.cases ::19:: incorrect details, then, the penalty order has alsoto be passed in the financial year in which suchassessments, re-assessments or block assessment wasconcluded. Sub-clause (a) of Section 275 (1)provides a further period of limitation in caseswhere there are appeals filed before the FirstAppellate authority or the Tribunal. Sub-clause(a); in cases in which the appellate remedy havingbeen availed of by the Department or the assesseeprovided for limitation, commencing from the end ofthe month in which such appellate order isreceived. In the case of an appeal having beentaken, it stands extended to six months from theend of the month in which the appellate order isreceived. This applies to both the first appellateorder of the Commissioner or the second appellateorder of the Tribunal. The introduction of theproviso does not render otiose a portion of themain body of the sub-clause. The proviso only ITA Nos.142/2012 and con.cases ::20:: ITA Nos.142/2012 and con.cases ::20:: intended extending the period of limitation afterthe first appellate order is received. That too inrespect of orders passed after 01.06.2003. Theproviso; we reiterate, does not render otiose theperiod of limitation provided in sub-clause (a),after the receipt of the order of the appellateTribunal. If that was the intention of thelegislature sub-clause(a) itself would have beenamended and the limitation for passing a finalorder confined to that period after receipt of thefirst appellate order. 11. We have also looked at the FinanceBill, 2003, which indicates the amendment havingbeen proposed in clause (89). We have examined theNotes on Clauses, which does not contain anyspecific explanation for introduction of theprovision. The Notes on Clause only indicate thatthe proviso as introduced in the Bill, intended toextent the period of limitation for passing the ITA Nos.142/2012 and con.cases ::21:: order under Section 271 after the first appellateorder was passed. We also examined the MemorandumExplaining the Provisions in the Finance Bill,2003, which does not have any reference to theaforesaid amendment. We hence have to read andunderstand the provision as it exists in thestatute. Since the limitation as provided inclause (a), after the order of the Tribunal hasbeen received by the Department has been retained,definitely the same has to apply in the case of anassessment in which there is a second appeal filedto the Tribunal. The proviso only introduces anextension insofar as limitation with respect to thefirst appellate orders passed after 01.06.2003.Hence, after a first appellate order is passed fromthe original proceedings subsequent to 01.06.2003,the limitation for passing an order of penaltyunder Section 271 is one year, from the end of themonth in which the Department receives the first ITA Nos.142/2012 and con.cases ::22:: appellate order. However, when there is a secondappeal filed to the Tribunal, then there is yetanother period of limitation provided. It standsfurther extended and would expire only after sixmonths from the end of the month in which theDepartment, receives the Tribunal's orders. 12. On the said interpretation we have tolook at the dates again. As we noticed, the orderunder Section 153A was passed on 17.06.2003. On thevery same date, a notice for penalty was issued.The assessee filed a first appeal and theproceedings were kept pending. The first appellateauthority passed its order on 11.09.2006. Again,the assessee approached the Tribunal with a secondappeal. The Department waited for the appealbefore the Tribunal to be over; quite justifiableand appropriate, since any modification made insecond appeal would result in such modificationhaving to be reflected in the penalty imposed too. ITA Nos.142/2012 and con.cases ::23:: The Tribunal passed its order on 08.01.2008. Then,the limitation as provided under Section 275(1)(a)comes to an end insofar as no further extensionhaving been provided with respect to an appealunder Section 260A before this Court or before theHon'ble Supreme Court. The order of penalty, whichis impugned herein, was passed on 31.07.2008. Wehad a doubt as to the exact date on which theDepartment received the order of the Tribunal. Thelearned Senior Counsel, Government of India (Taxes)has taken specific instructions from the Departmentand submits that the order was received on31.1.2008. The limitation as per clause (a) ofSection 275(1) is six months from the end of themonth in which the order of the Tribunal isreceived. The penalty order having been passed on31.07.2008, it is within the limitation period,though on the last day of the period as provided inclause (a). In such circumstances, we answer the ITA Nos.142/2012 and con.cases ::24:: ITA Nos.142/2012 and con.cases ::24:: fourth question raised herein above against theassessee and in favour of the Revenue. 13. The learned Counsel has a furthersubmission insofar as the justification of theTribunal to direct the Assessing Officer to reworkthe quantum of penalty in terms of the order of theHigh Court. The contention is raised on the groundthat there is a specific prohibition provided insub-section(1A) of Section 275. Sub-section (1A)contemplates situations where an order of penaltyhas been passed, revised or even dropped on thebasis of the appellate orders, which however has tobe revised or revived by reason of a further appealto the Tribunal, High Court or the Supreme Court,having resulted in modification of the assessment.It is contended that the order giving effect tosuch orders of the higher authorities, can only becarried out within six months from the end of themonth in which such order of the Commissioner ITA Nos.142/2012 and con.cases ::25:: (Appeals), Appellate Tribunal, High Court orSupreme Court is received by the Department. Wehave to notice that sub-section (1A) only speaks ofan order imposing, enhancing, reducing orcancelling penalty or dropping the proceedings forimposition of penalty being enabled on the basis ofthe revised or modified assessment, by givingeffect to such order of the Appellate Commissioner,Appellate Tribunal, High Court or Supreme Court.The proviso does specify the limitation of sixmonths. But, however, if the same is applied onthe facts of this case, it would only bedetrimental to the assessee. 14. In the present case, the order ofpenalty was passed after the Tribunal's order inthe assessment was received, within the limitationperiod, noticing that the Tribunal had upheld theblock assessment made by the Assessing Officer.The penalty order passed also has now been upheld ITA Nos.142/2012 and con.cases ::26:: by us and the contention of limitation rejected. This Court, in the assessment, modified theadditions in favour of the assessee. Hence, if thelimitation under the proviso to sub-section (1A) issaid to operate, there could be no modificationmade of the order passed under Section 271 based onthe order of the High Court. This would only bedetrimental to the assessee since otherwise theassessee would have to pay the penalty as imposedin the impugned orders without the benefit of themodification being made available to the assessee.We do not think that the intention of thelegislature was to prohibit the assessee fromgetting the benefit of an order in appeal beforethe higher authorities for reason only of theDepartment having not acted with expediency. We,hence, reject the said contention also and answerthe first question against the assessee and infavour of the Revenue, which in fact would enure to ITA Nos.142/2012 and con.cases ::27:: the benefit of the assessee by enabling revision of penalty, as per the judgment of the High Court. We, hence, reject the appeals, but howeverdirect the Assessing Officer that the penalty orderbe modified in accordance with the assessmentsmodified and upheld by the High Court in AnnexureF; if it has already not been done. No order as tocosts. Sd/- K.VINOD CHANDRANJudge Sd/-ASHOK MENONJudge jma/dkr ::28:: APPENDIX OF ITA 142/2012 PETITIONER'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2001-02 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT ANNEXURE-B TRUE COPY OF THE ORDER DATED 10.10.2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) I TO THE APPELLANTISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) I TO THE APPELLANT ANNEXURE-C TRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08.01.2008 ISSUED OT THE APPELLANTDATED 08.01.2008 ISSUED OT THE APPELLANT ANNEXURE-D Sd/- K.VINOD CHANDRANJudge Sd/-ASHOK MENONJudge jma/dkr ::28:: APPENDIX OF ITA 142/2012 PETITIONER'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2001-02 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT ANNEXURE-B TRUE COPY OF THE ORDER DATED 10.10.2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) I TO THE APPELLANTISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) I TO THE APPELLANT ANNEXURE-C TRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08.01.2008 ISSUED OT THE APPELLANTDATED 08.01.2008 ISSUED OT THE APPELLANT ANNEXURE-D TRUE COPY OF THE PENALTY ORDER FOR THE YEAR2001-02 DATED 31.07.2008 O THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II,CALICUT TO THE APPELLANT2001-02 DATED 31.07.2008 O THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II,CALICUT TO THE APPELLANT ANNEXURE-E TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) I , DATED 04.11.2009 ISSUED TO THE APPELLANTOF INCOME TAX (APPEALS) I , DATED 04.11.2009 ISSUED TO THE APPELLANT ANNEXURE-FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE HIGH COURT IN ITA NO.318 OF 2010DATED 25.07.2001 ISSUED TO THE APPELLANTHONOURABLE HIGH COURT IN ITA NO.318 OF 2010DATED 25.07.2001 ISSUED TO THE APPELLANT ANNEXURE-GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE-HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I(1), CALICUT TO THE APPELLANTDATED 16.05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I(1), CALICUT TO THE APPELLANT ANNEXURE-ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CFTRI, MYSORE28.12.2005 OF THE CFTRI, MYSORE ITA Nos.142/2012 and con.cases ::29:: APPENDIX OF ITA 133/2012 PETITIONER'S/S EXHIBITS: ANNEXURE-ATRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 1998-99 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE, CALICUT TO THE APPELLANTYEAR 1998-99 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE, CALICUT TO THE APPELLANT ANNEXURE-BTRUE COPY OF THE ORDER DATED 11.09.2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANTISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT ANNEXURE-CTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08.01.2008 ISSUED TO THE APPELLANTDATED 08.01.2008 ISSUED TO THE APPELLANT ANNEXURE-DTRUE COPY OF THE PENALTY ORDER FOR THE YEAR1998-99 DATED 31.-7.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II,CALICUT TO THE APPELLANT1998-99 DATED 31.-7.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II,CALICUT TO THE APPELLANT ANNEXURE-ETRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) I , DATED 04.11.2009 ISSUED TO THE APPELLANTOF INCOME TAX (APPEALS) I , DATED 04.11.2009 ISSUED TO THE APPELLANT ANNEXURE-FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE HIGH COURT IN ITA NO.314 OF 2010DATED 25.07.2011ISSUED TO THE APPELLANTHONOURABLE HIGH COURT IN ITA NO.314 OF 2010DATED 25.07.2011ISSUED TO THE APPELLANT ANNEXURE-GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE-HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.0-5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I (1)DATED 16.0-5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I (1) ANNEXURE-ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CFTRI,MYSORE28.12.2005 OF THE CFTRI,MYSORE APPENDIX OF ITA 141/2012 PETITIONER'S/S EXHIBITS: ANNEXURE ATRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2000-01 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT.YEAR 2000-01 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT. ANNEXURE-GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE-HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.0-5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I (1)DATED 16.0-5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I (1) ANNEXURE-ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CFTRI,MYSORE28.12.2005 OF THE CFTRI,MYSORE APPENDIX OF ITA 141/2012 PETITIONER'S/S EXHIBITS: ANNEXURE ATRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2000-01 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT.YEAR 2000-01 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10.10.2006 ISSUED BY THE COMMMISSIONER OF INCOME TAX (APPEALS)1 TO THE APPELLANT.ISSUED BY THE COMMMISSIONER OF INCOME TAX (APPEALS)1 TO THE APPELLANT. ANNEXURE CTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08.01.2008 ISSUED TO THE APPELLANT.DATED 08.01.2008 ISSUED TO THE APPELLANT. ANNEXURE DTRUE COPY OF THE PENALTY ORDER FOR THE YEAR2000-01 DATED 31.07.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE II,CALLICUT TO THE APPELLANT2000-01 DATED 31.07.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE II,CALLICUT TO THE APPELLANT ANNEXURE ETRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)1,DATED 04.11.2009 ISSUED TO THE APPELLANT.OF INCOME TAX (APPEALS)1,DATED 04.11.2009 ISSUED TO THE APPELLANT. ANNEXURE FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE HIGH COURT IN I T A NO.327 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANTHONOURABLE HIGH COURT IN I T A NO.327 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANT ANNEXURE GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1),CALICUT TO THE APPELLANT.DATED 16.05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1),CALICUT TO THE APPELLANT. ANNEXURE ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CTTRI,MYSORE.28.12.2005 OF THE CTTRI,MYSORE. ::31:: APPENDIX OF ITA 157/2012 PETITIONER'S/S EXHIBITS: ANNEXURE ATRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 1999-2000 DATED 17-03-2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10-10-2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT. ANNEXURE CTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08-01-2008 ISSUED TO THE APPELLANT. ANNEXURE DTRUE COPY OF THE PENALTY ORDER FOR THE YEAR1999-2000 DATED 31-07-2008 OF THE ASSISTANTCOMMISSIONER OF INCOME TAX, CENTRAL CIRCLE III, CALICUT TO THE APPELLANT. ::32:: APPENDIX OF ITA 158/2012 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2002-03 DATED 17-03-2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10-10-2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT. ANNEXURE CTRUE COPY OF THE APPELLATE TRIBUNALS ORDER DATED 08-01-2008 ISSUED TO THE APPELLANT. ANNEXURE DTRUE COPY OF THE PENALTY ORDER FOR THE YEAR2002-03 DATED 31-07-2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II, CALICUT TO THE APPELLANT. APPENDIX OF ITA 159/2012 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2003-04 DATED 17.3.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT.YEAR 2003-04 DATED 17.3.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10-10-2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT. ANNEXURE CTRUE COPY OF THE APPELLATE TRIBUNALS ORDER DATED 08-01-2008 ISSUED TO THE APPELLANT. ANNEXURE DTRUE COPY OF THE PENALTY ORDER FOR THE YEAR2002-03 DATED 31-07-2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II, CALICUT TO THE APPELLANT. APPENDIX OF ITA 159/2012 PETITIONER'S/S EXHIBITS: ANNEXURE A TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2003-04 DATED 17.3.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT.YEAR 2003-04 DATED 17.3.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10.10.2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT.ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) 1 TO THE APPELLANT. ANNEXURECTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 8.1.2008 ISSUED TO THE APPELLANT.DATED 8.1.2008 ISSUED TO THE APPELLANT. ANNEXURE D TRUE COPY OF THE PENALTY ORDER FOR THE YEAR2003-04 DATED 31.7.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II, CALICUT TO THE APPELLANT.2003-04 DATED 31.7.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II, CALICUT TO THE APPELLANT. ANNEXURE E TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 1, DATED 4.11.2009 ISSUED TO THE APPELLANT.OF INCOME TAX (APPEALS) 1, DATED 4.11.2009 ISSUED TO THE APPELLANT. ANNEXURE FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE HIGH COURT IN I.T.A. NO.330 OF 2010 DATED 25.7.2011 ISSUED TO THE APPELLANT.HONOURABLE HIGH COURT IN I.T.A. NO.330 OF 2010 DATED 25.7.2011 ISSUED TO THE APPELLANT. ANNEXURE GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 9.3.2012 ISSUED TO THE APPELLANT.DATED 9.3.2012 ISSUED TO THE APPELLANT. ANNEXURE HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), CALICUT TO THE APPELLANT.DATED 16.5.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), CALICUT TO THE APPELLANT. ANNEXURE ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CFTRI, MYSORE.28.12.2005 OF THE CFTRI, MYSORE. ITA Nos.142/2012 and con.cases APPENDIX OF ITA 160/2012 PETITIONER'S/S EXHIBITS: ANNEXURE ATRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2004-05 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT.YEAR 2004-05 DATED 17.03.2006 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE,CALICUT TO THE APPELLANT. ANNEXURE BTRUE COPY OF THE ORDER DATED 10.10.2006 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)1 TO THE APPELLANT.ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS)1 TO THE APPELLANT. ANNEXURE CTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 08.01.2008 ISSUED TO THE APPELLANTDATED 08.01.2008 ISSUED TO THE APPELLANT ANNEXURE DTRUE COPY OF PENALTY ORDER FOR THE YEAR 2004-05 DATED 31.07.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE II,CALICUT TO THE APPELLANT.2004-05 DATED 31.07.2008 OF THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE II,CALICUT TO THE APPELLANT. ANNEXURE E TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL)1,DATED 04.211.2009 ISSUED TO THE APPELLANTOF INCOME TAX (APPEAL)1,DATED 04.211.2009 ISSUED TO THE APPELLANT ANNEXURE FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE COURT IN I T A NO.331 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANT.HONOURABLE COURT IN I T A NO.331 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANT. ANNEXURE GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.,05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1), CALICUT TO THE APPELLANT.DATED 16.,05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1), CALICUT TO THE APPELLANT. ANNEXURE E TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL)1,DATED 04.211.2009 ISSUED TO THE APPELLANTOF INCOME TAX (APPEAL)1,DATED 04.211.2009 ISSUED TO THE APPELLANT ANNEXURE FTRUE COPY OF THE JUDGMENT PASSED BY THE HONOURABLE COURT IN I T A NO.331 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANT.HONOURABLE COURT IN I T A NO.331 OF 2010 DATED 25.07.2011 ISSUED TO THE APPELLANT. ANNEXURE GTRUE COPY OF THE APPELLATE TRIBUNAL'S ORDERDATED 09.03.2012 ISSUED TO THE APPELLANTDATED 09.03.2012 ISSUED TO THE APPELLANT ANNEXURE HTRUE COPY OF THE REVISED PENALTY ORDER DATED 16.,05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1), CALICUT TO THE APPELLANT.DATED 16.,05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE 1(1), CALICUT TO THE APPELLANT. ANNEXURE ITRUE COPY OF THE CERTIFICATE DATED 28.12.2005 OF THE CFTRI,MYSORE.28.12.2005 OF THE CFTRI,MYSORE.