Answer

1. F

   Facts

   Sec 275 sets time limits for penalty orders, counted from the end of the period after the assessment or the appellate order. The limits were changed by recent Finance Acts, so the right limit depends on when proceedings started.

2. P

   Provisions and law

   • Sec 275, Income-tax Act 1961Time limits for imposing penalties
   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
3. A

   Analysis

   List the dates: assessment order, penalty notice, any appeal order and when it was received by the department. Then check the Sec 275 limit that applies to that period. If the penalty order is passed after the limit, it can be challenged as time barred. This needs careful counting, so get a professional to check before relying on it.

4. C

   Conclusion

   1. 1Collect the dates of the assessment, penalty notice and any appellate order
   2. 2Check the version of Sec 275 that applies to your dates
   3. 3If the order is late, raise time bar in appeal
   4. 4If within time, defend on merits

The 2025 Act number for Sec 275 is not confirmed in our mapping; check the latest notification for time limits.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.