As per sec 254 time limit for rectification of mistake in order is four year counted from the date all proceding has been completed

Last updated: 11 June 2012

Court :
HIGH COURT OF DELHI

Brief :
The facts giving rise to the present writ petition and which are necessary for a decision in this writ petition are very few. By virtue of an order dated 31.03.2008, the Income Tax Appellate Tribunal disposed of the said ITA Nos. 3584 to 3586 (Del)/2007 by following the decision of the Supreme Court in the case of Virtual Soft Systems Ltd. vs. Commissioner of Income Tax, Delhi-I: (2007) 289 ITR 83, wherein the Supreme Court held that no penalty for concealment can be imposed under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as „the said Act‟) if there is no tax payable by the assessee on account of the assessments being made in respect of a loss return. The Tribunal was of the view that since the decision of the Commissioner of Income Tax (Appeals), which had cancelled the penalties imposed on the assessee, was in line with the decision of the Supreme Court in the case of Virtual Soft Systems Ltd. (supra), the decision of the Commissioner Income Tax (Appeals) was liable to be upheld. Consequently, the appeals filed by the revenue before the Tribunal was dismissed

Citation :
LAKSHMI SUGAR MILLS CO. LTD. AND ORS. … Petitioners Versus COMMISSIONER OF INCOME TAX & ANR. … Respondents