- (1.) This order shall dispose of ITA Nos. 524 to 527 of 2009 as according to the learned Counsel for the parties, common question of law and facts are involved therein. For brevity, the facts are being taken from ITA No. 524 of 2009.
(2.) This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 5.12.2008 passed by the Income Tax Appellate Tribunal, Chandigarh, Bench 'B', Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 784/CHD/2006, relating to the assessment year 1995-96, claiming the following substantial questions of law: i) Whether, in the facts and circumstances of the case, the ld ITAT has erred in law in allowing the appeal of the Assessee by holding that four years was the reasonable period to issue show cause under Section 201 by the Assessing Officer to Assessee though No. such limitation was provided in Section 201 of the Income Tax Act, 1961? ii) Whether, in the facts and circumstances of the case the ld. ITAT has erred in law in holding that the Assessing Officer was not empowered to issue show cause Under Section 201 after a period of four years in view of Hon'ble Supreme Court order passed in the case of Padmasundra Rao and Ors. v. State of Tamil Nadu and Ors, 2002 255 ITR 147? Put shortly, the facts necessary for adjudication as narrated in the appeal are that the Assessee is a Government of India Undertaking. The pay scales of the employees of the Assessee were revised by the Government of India w.e.f. 1.1.1992 and the arrears of pay were paid to them between the financial years 1994-95 and 1997 98. During the assessment years in question, the Assessee had made the following payments of arrears of salary to its employees: Financial Year Amount Paid 1994-95 Rs.1,03,48,422/- 1995-96 Rs.2,56,85,573/- 1996-97 Rs.2,72,06,227/- 1997-98 Rs.2,12,06,823/-
(3.) We have heard learned Counsel for the parties.;