2013 (7) TMI 85 - HC - Income Tax

Penalty u/s 271D - period of limitation - Held that - when the authority competent to impose penalty under s.271D was the Jt.CIT, the period of limitation for the purpose of such penalty proceedings was not to be reckoned from the issue of first show cause by the Jt. CIT, but the period of limitation was to be reckoned from the date of issue of first show cause for initiation of such penalty proceedings - Present proceedings hit by the bar of limitation - Tribunal not committed any error in setting aside the order of penalty - Following decision of Commissioner of Income Tax vs. Jitendra Singh Rathore 2013 (3) TMI 222 - RAJASTHAN HIGH COURT - Decided in favour of assessee.

Summary

The High Court of Rajasthan dismissed the appeal in a tax penalty case, citing a previous judgment that clarified the period of limitation for penalty proceedings under section 271D of the Income Tax Act. The court held that the penalty order issued by the Joint Commissioner of Income Tax was beyond the limitation period, based on the date of the first show cause notice for initiating the penalty proceedings.