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2018 (6) TMI 1122 - AT - Income TaxLevy of penalty u/s 271D - period of limitation - transaction between husband and wife - Held that:- There is gap of more than four and half years from the date of completion of assessment order and initiation of penalty proceedings. Although there is no time limit prescribed for initiation of penalty proceedings under the said provisions, however the courts are invariably holding that such proceedings should be initiated within a reasonable time. Since in the instant case such penalty proceedings have been initiated after a gap of more than four and half years from the completion of assessment proceedings u/s 143(3) of the Act, therefore, initiation of penalty proceedings is barred by limitation Even otherwise also, the transaction is between husband and wife. Various benches of the Tribunal are holding that transaction of loan between husband and wife does not attract the provisions of section 269SS of the Act. Penalty levied u/s 271D of the Act in the instant case is not justified - Decided in favour of assessee.
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