Case Law Details
Amit Sabharwal Vs ITO (ITAT Delhi)
The issue under consideration is whether the penalty proceeding initiated after 4.5 years from date of original assessment order is justified in lawand also when order was silent about the levy of penalty under section 271B?
ITAT states that as per the provisions of section 275(1)(c), no order imposing a penalty under this Chapter shall be passed in any case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. As per the various decisions relied on by the ld. counsel for the assessee, penalty is not leviable where the penalty proceedings were not initiated long after the completion of the assessment and the assessment order was silent about the levy of penalty u/s 271B of the Act. Since the Assessing Officer in the instant case has initiated the penalty proceedings after a period of more than 4 1/2 years from the date of original assessment order and there was no such mention of the initiation of penalty proceedings u/s 271B of the Act and the fact of higher gross receipt was very much available to the Assessing Officer which has been mentioned in the body of the original assessment order, therefore, the penalty proceeding initiated by the Assessing Officer in the instant case in my opinion is barred by limitation. In view of the above discussion, ITAT of the considered opinion that the penalty proceedings initiated after a long gap of more than 4 1/2 years from the date of original assessment order is not sustainable in law being barred by limitation. Therefore, the order of the CIT(A) is set aside and the grounds raised by the assessee are allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order dated 13th October, 2017 passed by the CIT(A), Ghaziabad, relating to Assessment Year 2009-10.
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