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2017 (12) TMI 1464 - AT - Income TaxPenalty proceedings u/s 271(l)(c) - levy penalty immediately after the culmination of the assessment proceedings - Held that:- Once the statute provides an assessing authority the discretion to either levy penalty u/s 271(l)(c) immediately after the assessment or after waiting for the outcome of appellate proceedings, it is expected that such a discretion would be carefully exercised by the relevant assessing authority. In the instant case, the facts on record clearly establish that the AO deemed it fit not to levy penalty immediately after the culmination of the assessment proceedings. Show-cause notice dated 12th April, 2017 issued by the AO is also silent on the point as to why suddenly the case warrants levy of penalty without awaiting the outcome of the first appellate proceedings. The reason behind separate limitations as prescribed by the legislature need be understood in this context. There may be a case where the discretion to levy penalty will be in order where immediately after the assessment, the AO chooses to levy penalty, because in his view the material in assessment proceedings requires such an action. I Moreover, taking a prima facie view in the matter, we also find that if at all the AO wanted to levy the penalty without waiting for the orders of the Tribunal in quantum appellate proceedings then, as per the provisions of section 271(l)(c), such an order could only have been passed by 30th April, 2014 and 30th April, 2015 for AY 2006-07 & AY 2007- 08 respectively. Moreover, we find that even equity demands stay of penalty proceedings be granted in the instant case. Provisions of section 275 adequately safeguard the interest of revenue and hence even after the disposal of the appeals by the Tribunal, adequate time is available with the AO for levy of penalty. Thus we grant a stay against penalty proceedings u/s 271(l)(c) of the Act initiated by the AO in the instant case, vide show cause notices dated 12th April, 2017, for a period of six months or till disposal of appeals whichever is earlier.
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