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2023 (5) TMI 629 - AT - Income TaxRevision u/s 263 - Correct penalty provisions for addition u/s 69A - As per CIT AO erred in initiating penalty proceedings u/s 270A instead u/s 271AAC as addition made in the assessment was on account of unexplained money u/s 69A r.w.s.115BBE which attracts penalty u/s 271AAC and not u/s 270A - HELD THAT:- The law is very well settled that penalty proceedings and the assessment proceedings are completely distinct and separate even though the penalty proceeding emanates out of the quantum assessment proceedings. We hold that the Ld. PCIT had invoked his revisionary jurisdiction u/s 263 of the Act and had sought to revise only the initiation of penalty proceedings under the wrong section, forgetting the fact that there was no such penalty order that was even passed by the ld AO. In any case, the penalty order could not be passed beyond 30.06.2020. Hence, the revisionary jurisdiction initiated u/s 263 by the Ld PCIT deserves to be quashed on this count itself. In any case, we find that the law is very well settled that penalty proceedings and assessment proceedings are distinct and separate. Moreover, in our considered opinion, the Ld PCIT by invoking his revision jurisdiction u/s 263 of the Act cannot direct the ld AO to initiate any penalty proceedings. This aspect is no longer res integra in view of the order of the Rakesh Nain [2015 (12) TMI 979 - PUNJAB AND HARYANA HIGH COURT]. When the power of the Ld PCIT in the revision order u/s 263 of the Act is curtailed to even direct the ld AO to initiate penalty proceedings, obviously the Ld PCIT could not have any power, as authorized by law, in directing the ld. AO to initiate penalty proceedings under the correct section. The assessee’s case stand in a much better footing than the facts of the case that prevailed before the Hon’ble Jurisdictional High Court referred supra. Appeal of the assessee is allowed.
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