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TMI Blog2015 (10) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... 30th June 2008. When the AO recommended the initiation of penalty proceedings the AO appeared to be conscious of the fact that he did not have the power to issue notice as far as the penalty proceedings under Section 271-E was concerned. He, therefore, referred the matter concerning penalty proceedings under Section 271-E to the Additional CIT. For some reason, the Additional CIT did not issue a show cause notice to the Assessee under Section 271-E (1) till 20th March 2012. There is no explanation whatsoever for the delay of nearly five years after the assessment order in the Additional CIT issuing notice under Section 271-E of the Act. The Additional CIT ought to have been conscious of the limitation under Section 275 (1) (c), i.e., th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing paragraph issued a direction to initiate proceedings against the Assessee under Sections 271 (1) (c) and 271-E of the Act. Admittedly, under Section 271-E (2) of the Act, any penalty under Section 271-E (1) can only be imposed by the Joint Commissioner of Income Tax [ Joint CIT ]. Consequently, the AO referred the matter to the Additional CIT. 4. A perusal of the order dated 20th March 2012 of the Additional CIT shows that a show-cause notice initiating penalty proceedings under Section 271-E was issued to the Assessee on 12th March 2012 requiring it to explain as to why penalty should not be levied on it under Section 271-E on account of violation or the provisions of Section 269T of the Act. With the Assessee having failed to furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above submission of learned Standing counsel for the Revenue. Section 275 (1) (c) reads as under: 275. (1) No order imposing a penalty under this Chapter shall be passed (a).... (b)..... (c) in any other case, after 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. 9. In terms of the above provision, there are two distinct periods of limitation for passing a penalty order, and one that expires later will apply. One is the end of the financial year in which the quantum proceedings are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the bank as required under ss. 269SS and 269T are not related to the assessment proceeding but are independent of it, therefore, the completion of appellate proceedings arising out of the assessment proceedings or the other proceedings during which the penalty proceedings under ss. 271D and 271E may have been initiated has no relevance for sustaining or not sustaining the penalty proceedings and, therefore, cl. (a) of sub-s. (1) of s. 275 cannot be attracted to such proceedings. If that were not so cl. (c) of s. 275(1) would be redundant because otherwise as a matter of fact every penalty proceeding is usually initiated when during some proceedings such default is noticed, though the final fact finding in this proceeding may not have an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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