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TMI Blog2024 (9) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... eted the penalty imposed u/s 271 D read with Section 269SS and orders of penalty passed u/s 271E read with Section 269T of the Income Tax Act 1961 ('Act' for short). 2. The Department of Revenue has urged identical grounds of Appeal, which reads as under:- "1. That the order of the Ld. CIT(A) is not correct in law and on facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the penalty levied on protective basis u/s 271D of the I. T. Act, 1961." 3. Brief facts of the case are that, during the course of the assessment proceedings for Assessment Years 2008-09, 2010-11, 2011-12 and 2012-13, the A.O. noticed that the assessee has received certain loans/deposits, each more than Rs. 20,000/- from various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of orally argue on the said ground before us. We find merit in the contention of the Assessee's Representative. Though the assessee has raised the ground of limitation for initiation of penalty before the CIT(A), the same has not been adjudicated by the Ld. CIT(A). The Ld. Assessee's Representative further submitted that the order of penalty passed u/s 271D and 271E of the Act are barred by limitation in view of provisions of Section 275(1)(c) of the Act, by taking us through the records, made oral elaborate submission and also filed the Written submission and sought for dismissal of the Appeal filed by the Revenue. 5. The Ld. Departmental Representative submitted that the Ld. CIT(A) has committed error in deleting the penalty l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same is produced for the sake of convenience in following manners:- S. No. A.Y Section Date of Penalty Order Condition-1 Expiry of the Financial Year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed Condition II- six months from the end of the month in which action for imposition of penalty is initiated Limitation to levy penalty u/s 271D and 271E Date on which Limitation Assessment under proceedings condition 1 completed Date of initiation of Limitation penalty i.e. date of under recommendation Condition II to initiate Penalty (Para and Page No. of penalty order 1 08-09 271D 24.09.2018 18.07.2018 31.03.2018 08.12.2017 (Para1 Pg1) 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ***] Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever period expires later : Provided that in a case where the relevant assessment or other order is the subject matter of an appeal to the Commissioner (Appeals) under section 246 or section 246A, and the Commissioner (Appeals) passes the order on or after the 1st day of June, 2003 disposing of such appeal, an order imposing penalty shall be passed before the expiry of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or within one year from the end of the financial year in which the order of the Commissioner (Appeals) is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 275(l)(c) of the Act. Therefore, the limitation period for the imposition of penalty under these provisions would be the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. The limitation period is not dependent on the pendency of appeal against the assessment or other order referred to in section 275(1 )(a) of the Act." 12. The Hon'ble High Court of Delhi in its Judgment dated 05/05/2017 in the case of Principal Commissioner of Income Tax, Central 2, Vs. Mahesh Wood Product Pvt. Ltd. reported in 2017 (5) TMI 433 he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty has been initiated and completed on 31/03/2018. As per second condition of Section 275(1)(c) i.e. six months from the end of month in which action for imposition of penalty has been initiated will be expired on 30/06/2018. Considering the fact that the Ld. Additional CIT(A) has initiated penalty on 07/07/2018 whereas the same has been referred to him on 08/12/2017 itself, thus, in our considered opinion, the same is barred by limitation as per provision of Section 275(1)(c) of the Act. Thus, we have no hesitation to delete the orders of penalty, accordingly, we find no reason to interfere with the conclusion made in the order of the CIT(A) in deleting the penalty, accordingly, the Ground of Appeal of the Revenue. 14. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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