Property Plus Realtors Vs Union of India & Ors (Delhi High Court)
Delhi High Court held that imposition of penalty under section 271DA of the Income Tax Act is justifiable since there is no inordinately and inexplicably delay in initiation of penalty proceedings. Accordingly, writ dismissed.
Facts- Post search operations, the petitioner filed his return for the relevant assessment year (AY) 2022-23. The said return was taken up for scrutiny and the proceedings culminated in an assessment order dated 28.03.2024. The net profit of the assessee was determined at Rs. 22,29,92,302/- against a returned income of Rs. 9,77,91,650/-. In addition, the Assessing Officer (AO) also decided that the penalty proceedings be initiated in respect of the cash allegedly received by the petitioner. On 09.09.2024 the concerned authority issued a notice u/s. 274 r.w.s. 271DA of the Act calling upon the petitioner to show cause why penalty not be imposed u/s. 271DA of the Act. Thereafter, on 17.10.2024, the concerned authority passed the impugned order.
The limited question which falls for consideration of this court is whether the impugned order is beyond the period of limitation as prescribed in 275(1)(c) of the Act.
Conclusion- Held that in cases where the initiation of the penalty proceedings are inordinately and inexplicably delayed beyond a reasonable period, the said issue may rise for consideration. However, in the present case no such issue arises for consideration of this court as the penalty proceedings were initiated within a period of eleven days of the culmination of the assessment proceedings whereas the decision to make a reference for initiation of the penalty proceedings was taken. We are unable to accept that this period can be termed as unreasonable. Thus, we do not find any merit in the present petition. The same is accordingly dismissed.
