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2013 (3) TMI 222 - HC - Income TaxPenalty under Section 271D - Tribunal deleted the penalty levy as it was not imposed within the prescribed period u/s 275(i)(c) - Held that:- Even if the matter had otherwise been in appeal before the CIT(A) against the original assessment order and the appeal was decided on 13.02.2004, the same was hardly of relevance so far the penalty proceedings under Section 271D were concerned. As held in Hissaria Bros. (2006 (7) TMI 163 - RAJASTHAN HIGH COURT) completion of appellate proceedings arising out of assessment proceedings has no relevance over sustaining such penalty proceedings The first show cause notice for initiation of proceedings was issued by the AO on 25.03.2003 and was served on the assessee on 27.03.2003. Obviously, the later period also expired on 30.09.2003 when six months expired from the end of the month in which the action for imposing the penalty was initiated. The order as passed by the Joint Commissioner of Income Tax for the penalty under Section 271D on 28.05.2004 was clearly hit by the bar of limitation and has rightly been set aside in the orders impugned. Thus even when the authority competent to impose penalty under Section 271D was the Joint Commissioner, the period of limitation for the purpose of such penalty proceedings was not to be reckoned form the issue of first show cause, but from the date of issue of first show cause for initiation of such penalty proceedings - thus setting aside the order of penalty - in favour of assessee.
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