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2018 (11) TMI 1658 - AT - Income TaxRevision u/s 263 - reviving the penalty proceedings which was already expired and barred by limitation - Penalty levied u/s.271(1)(c) - limitation of Sec.275(1) in respect of Sec.271C - HELD THAT:- The limitation of Sec.275(1) of the Act in respect of Sec.271C of the Act would start, when the action for the imposition of the penalty is initiated. Here, in the present case, the action for initiation of the penalty u/s.271(1)(c) of the Act had been initiated in the course of assessment proceedings itself u/s.143(3) r.w.s.153A on 31.03.2016. Thus, the time limit for levy of penalty u/s.271(1)(c) of the Act would expire in the present case on 31.09.2016, being 6 months from the end of the month in which the penalty proceedings has been initiated. Now, after the expiry of said limitation, the ld. Principal Commissioner of Income Tax has issued the show cause notice on 09.03.2018 for reviving the penalty proceedings, which was already expired and barred by limitation. True, the order passed by the AO dropping the penalty proceedings is an unspeaking order, but still, that would not make it valid reason for extending the limitation provided u/s.275 of the Act for the purpose of levying the penalty or for considering the levy of penalty u/s.271(1)(c) of the Act by invoking the powers of revision u/s.263. In the circumstances, the order passed u/s. 263 being unsustainable in law stands quashed. - Decided in favour of assessee.
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