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Does order under Section 147 supersedes the original order

Indian (CA) (53 Points)

11 March 2011

In the original assessment order the Assessing officer has levied penalty under Section 271(1)(c) of the Act. However, in the order passed under Section 147, no penalty is passed by the AO.

Does the order under Section 147 supersede the order passed under Section 143 or is the order just an extension of the original order?

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3 Replies

amrita (Article Assistant ) (91 Points)
Replied 11 March 2011

Both r to be dealt separately. 271(1)(c) Penalty has to be dealt as per the assessment order passed u/s 143(3)

Do go through the article on sec 147.https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2004%5D140TAXMAN0016(BOM).HTM

Indian (CA) (53 Points)
Replied 11 March 2011

In my case both the original assessment order and order under Section 147 have been passed by the AO only and not by the Commisioner. Hence, the above cited judgment is not applicable in the present case.

Thanks

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 14 March 2011

Normally the doctrine of merger will apply in this case. The orginal order will merge with the 147 order. But if the addition in the orginal order is continued in the 147 order, then the events which attracted the penalty remains unaltered and the AO can take a stand that Penalty proceedings and Asst proceedings are separate and therefore penalty stands.

But if penalty is already levied but under appeal, this matter can be agitated in the appeal. If not file a revision before CIT.

Will have to research on case laws for thsi!!!