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TMI Blog2018 (11) TMI 1658X X X X Extracts X X X X X X X X Extracts X X X X ..... c) of the Act would expire in the present case on 31.09.2016, being 6 months from the end of the month in which the penalty proceedings has been initiated. Now, after the expiry of said limitation, the ld. Principal Commissioner of Income Tax has issued the show cause notice on 09.03.2018 for reviving the penalty proceedings, which was already expired and barred by limitation. True, the order passed by the AO dropping the penalty proceedings is an unspeaking order, but still, that would not make it valid reason for extending the limitation provided u/s.275 of the Act for the purpose of levying the penalty or for considering the levy of penalty u/s.271(1)(c) of the Act by invoking the powers of revision u/s.263. In the circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dropped the penalty proceedings after considering the explanation filed by the assessee. It was a submission that the dropping of the penalty proceedings by the ld. Assessing Officer in the order sheet noting is extracted at para 5.1. of the order of the Pr. CIT u/s.263 of the Act. It was a submission that the ld. Principal Commissioner of Income Tax had issued a show cause notice u/s.263 dated 09.03.2018 asking the assessee why the dropping of the penalty proceedings initiated by ld. Assessing Officer in assessee s case should not be revised. The assessee had replied vide letter dated 20.03.2018. It was a submission that the reply of assessee was not considered and the ld. Principal Commissioner of Income Tax passed an order dated 27.03.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. We have considered the rival submissions. At the outset, the decision of the Hon ble Supreme Court in the case of Toyota Motor Corporation Vs. CIT referred to supra, is on completely different footing. That was the case where penalty u/s.271C was involved, and that was the case of failure to deduct tax at source. In the present case, the issue is of concealed income. It is an issue relating to penalty levied u/s.271(1)(c) of the Act. Provisions of the section 271(1)(c) of the Act requires the initiation of penalty proceedings in the course of assessment proceedings, and it is clearly on the satisfaction of the person, who has passed the assessment order, or person who has in the course of any proceedings under the Act is satis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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