Case Law Details
Sunil Dandriyal Vs JCIT (ITAT Delhi)
The case of Sunil Dandriyal vs JCIT, adjudicated by the Income Tax Appellate Tribunal (ITAT) Delhi, concerns the imposition of penalties under Section 271D of the Income Tax Act, 1961. The central issue revolves around the interpretation of the time limit for passing penalty orders as prescribed by Section 275(1)(c) of the Act. The appellant contested the penalty orders, arguing that they were barred by limitation.
Background and Proceedings: The assessee received cash amounts of Rs.10,00,000 and Rs.1,17,50,000 in the assessment years 2009-10 and 2010-11, respectively, from Sh. Sanjay Bansal. The Assessing Officer (AO) completed the quantum assessment proceedings for the AY 2009-10 under Section 153A read with Section 143(3) of the Act on March 30, 2015. The Commissioner of Income Tax (Appeals) [CIT(A)] directed the AO to recommend the initiation of penalty proceedings under Section 271D of the Act for the cash receipts from Mr. Sanjay Bansal.
The AO referred the matter to the Joint Commissioner of Income Tax (JCIT) for initiating penalty proceedings on March 25, 2017. The JCIT passed penalty orders under Section 271D on November 29, 2017. The crucial question was whether the penalty orders were within the statutory time limit.
Statutory Provision: Section 275(1)(c) of the Act prescribes the time limit for passing a penalty order:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
