| Question And Answer | |
|---|---|
| Subject: | Limitation for passing Order u/s Section 271B |
| Category: | Income-Tax |
| Querist: | Govind Agrawal |
| Answered by: | Law Intern |
| Tags: | Section 271B |
| Date: | July 25, 2026 |
Limitation for passing order by AO in response to Order u/s 250 by CIT(A).
The Ld. CIT(A) passed the order in Penalty Appeal u/s 271B with the direction to the AO to give another opportunity for Personal Hearing through VC and decide the issue on merits on 24.12.2024.
The Ld. AO passed the Order after providing opportunity of PH through VC on 30.06.2026 i.e. after the lapse of one and a half years.
- Query: Whether the order passed by the Ld. AO is barred by limitation?
U/s 153(5), where effect is to be given to an order u/s 250 by the AO, wholly or partly, otherwise than by way of making a fresh assessment or reassessment, such effect shall be given within 3 months from the end of the month in which the order is received by the Commissioner. The Commissioner may allow an additional period of 6 months if it is not possible to give effect within the initial 3 months.
In the present case, the direction is to provide a personal hearing through VC and decide the issue on merits is an order giving effect to the appellate order.
It appears as the CIT(A)’s order was on 24.12.2024, the AO’s order dated 30.06.2026 is beyond limitation.
You will have to file an appeal against the AO’s order and argue it is barred by limitation.