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2023 (10) TMI 1321 - DELHI HIGH COURTPenalty u/s 271E - period of limitation as prescribed u/s 275 (1)(c) - HELD THAT:- If the limitation period is connected to when the concerned officer issues notice, then the appellant/ revenue can extend the period of limitation, way beyond the timeline prescribed in Section 275 (1)(c). We are clearly of the view that the notice issued by the JCIT on 13.06.2011 could not have extended the period of limitation, as prescribed under Section 275 (1)(c). In this case, what is required to be brought to the forefront is that the AO had taken prior approval of the ACIT, who is equal in rank to the JCIT, before triggering the penalty proceedings. Thus, although the decision to initiate penalty proceedings is found embedded in the assessment order dated 31.12.2010 and approval to frame the assessment order was given prior to the said date, the notice was issued only on 13.06.2011. Even though this may be an additional factor in this particular case, our reasons for holding the limitation period as prescribed u/s 275 (1)(c) had expired latest by 30.06.2011, is not confined only to this aspect of the matter. The appellant/revenue, as noticed above, cannot extend the period of limitation by deciding at its whim and fancy when the notice has to be issued. The notice u/s 274 should have been issued before the period of limitation, as discussed above. Decided in favour of assessee.
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