B. Anand Babu Vs DCIT (ITAT Chennai)
Penalty u/s 271D Quashed as Time-Barred under Section 275(1)(c)
The Hon’ble ITAT, Chennai held that the impugned penalty orders passed u/s 271D for AYs 2016-17, 2017-18 and 2019-20 were vitiated and barred by limitation under Section 275(1)(c) of the Act. The Tribunal noted that no assessment proceedings were framed, and therefore the first limb of Section 275(1)(c) was not applicable. In the absence of assessment, the date of initiation of penalty proceedings was held to be 21.04.2022, being the date on which the AO made a reference to the Addl./JCIT. Consequently, the six-month period expired on 31.10.2022, whereas the penalties were imposed in December 2022. The contention of the Revenue that limitation should be reckoned from the date of notice issued by the Faceless Penalty Unit was rejected. Since the assessee succeeded on the legal issue of time-barring, other legal issues and merits were left open, and all the appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
These are appeals preferred by the assessee is against the orders of the Learned Commissioner of Income Tax (Appeals), (hereinafter referred to as ‘Ld.CIT(A)‘), Chennai-18, all dated 13.06.2025 for the Assessment Year (hereinafter referred to as ‘AY‘) 2016-17, 2017-18 & 2019-20.
