2017 (10) TMI 1617 - AT - Income Tax
Penalty imposed u/s 271D - starting point for initiation of penalty proceedings - period of limitation - whether the limitation period has to be calculated from the date on which the penalty proceedings were first initiated, that is the date of the assessment order or from the date on which the show cause notices under section 271D were issued, that is March 2009? - HELD THAT:- Limitation period was to be calculated from the date on which a reference was made by the AO to the ACIT and not from the date on which the show cause notice was issued. In the present appeals before us, the penalty proceedings were initiated in the assessment orders itself and, therefore, the limitation period will begin to run from December 2008 itself and not from March 2009 when the penalty notices were issued.
Respectfully following the ratio laid down by JKD CAPITAL & FINLEASE LTD. [2015 (10) TMI 1281 - DELHI HIGH COURT] , MAHESH WOOD PRODUCTS PVT. LTD., [2017 (5) TMI 433 - DELHI HIGH COURT] we have no hesitation in holding that all the three penalty orders were barred by limitation and were void ab initio. Accordingly, without going into the merits of the cases, we dismiss all the three appeals of the Department as the penalty orders itself were void ab initio being barred by limitation. Decided in favour of assessee.