Meaning of “In the course of which the proceedings”

The meaning of in the course of which the proceedings of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here is an excerpt of the court’s order in which the Hon’ble Tribunal tried to explain the meaning of in the course of which the proceedings.

Meaning of in the course of which the proceedings defined by court

The phrase “In the course of which the proceedings” of the Income Tax Act came up before hon’ble ITAT-Amritsar in Gokal Chand Shammi Kumar Kapoor Vs. ITO :[1998] 67 ITD 425 (ASR. – TRIB.) and it explained

Meaning: The words ‘in the course of which the proceedings’ are nothing but descriptive part of proceedings giving two-year period or six months, as the case may be, from the end of the financial year in which proceedings resulting into the action or cause by which the penalty proceedings have been initiated. There has to be proceeding in a previous year which will give a logical conclusion for coming to a finding that the assessee has violated some or any provisions of the act and then the limitation will start from the two year or six months of such proceedings.

Updated up to Finance Act 2021.