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TMI Blog2019 (8) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Mrs. Pushya Sitaraman, SC for Mr. R. Murali JUDGMENT T. S. SIVAGNANAM, J. We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel and Ms.K.G.Usharani, learned Standing Counsel appearing for the Revenue and Mrs.Pushya Sitaraman, learned Senior Counsel appearing on behalf of Mr.R.Murali, learned counsel appearing for the respondent - assessee. 2. This appeal, fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ratio of the judgment of the Hon'ble Apex Court in the case of Toyota Motor Corporation Vs. CIT [reported in 306 ITR 52] to the effect that dropping of penalty proceedings without reasoning is amenable to revision under Section 263 of the Income Tax Act ?" 4. The assessee is an individual, who is engaged in the business of property development. For the assessment year under consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quently, the Assessing Officer dropped the penalty proceedings on 08.9.2016. This, according to the Revenue, is without recording reasons and therefore, the Principal Commissioner of Income Tax, Central 2, Chennai-34 namely the appellant issued a notice under Section 263 of the Act dated 09.3.2018 calling upon the assessee to show cause as to why the order passed by the Assessing Officer dropping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings. There is no time limit for initiation of penalty under Section 271C of the Act. The limitation of Section 275(1) of the Act in respect of Section 271C of the Act would start, when the action for the imposition of the penalty is initiated. Here, in the present case, the action for initiation of the penalty under Section 271(1)(c) of the Act had been initiated in the course of assessment pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty or for considering the levy of penalty under Section 271(1)(c) of the Act by invoking the powers of revision under Section 263 of the Act. In the circumstances, the order passed under Section 263 of the Act, being unsustainable in law, stands quashed." 7. Considering the factual position, which was noted by the Tribunal, a decision has been arrived at by the Tribunal quashing the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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