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2019 (5) TMI 944 - AT - Income TaxLevy of penalty u/s 271B - penalty proceedings initiated after a long gap of more than 4 ½ years from the date of original assessment in order passed in remanded matter by Tribunal - barred by limitation - HELD THAT:- Penalty is not leviable where the penalty proceedings were not initiated long after the completion of the assessment and the assessment order was silent about the levy of penalty u/s 271B. Since the AO in the instant case has initiated the penalty proceedings after a period of more than 4 ½ years from the date of original assessment order and there was no such mention of the initiation of penalty proceedings u/s 271B and the fact of higher gross receipt was very much available to the Assessing Officer which has been mentioned in the body of the original assessment order, therefore, the penalty proceeding initiated by the AO in our opinion is barred by limitation. The decision relied on by the DR will not help the Revenue since the same relates to initiation of penalty proceedings u/s 271B in the course of assessment proceedings. The decision does not speak of levy of penalty after inordinate delay. The penalty proceedings initiated after a long gap of more than 4 ½ years from the date of original assessment order is not sustainable in law being barred by limitation. - Decided in favour of assessee.
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