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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 ..... he course of assessment proceedings itself under Section 143(3) read with Section 153A of the Act on 31.3.2016. Time limit for levy of penalty under Section 271(1)(c) of the Act would expire in the present case on 31.9.2016, being six months from the end of the month, in which, the penalty proceedings have been initiated. Now, after the expiry of the said limitation, the learned Principal Commissioner of Income Tax has issued the show cause notice on 09.3.2018 for reviving the penalty proceedings, which had already expired and was barred by limitation. True, the order passed by the learned Assessing Officer dropping the penalty proceedings is an unspeaking order, but still, that would not make it valid reason for extending the limitation pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in quashing the revision order passed under Section 263 of the Income Tax Act by applying the time limit prescribed for penalty proceedings under Section 271(1)(c) and not the time limit prescribed under Section 263 of the Act ? And ii. Whether the Appellate Tribunal was correct in law in not appreciating 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat, the assessee filed an appeal before the Tribunal. The Tribunal, after examining the factual position and taking note of the legal submissions made on behalf of the assessee as well as the Revenue, allowed the appeal. The appeal was allowed by the Tribunal considering the fact situation to examine as to whether the penalty could have been imposed beyond the period of limitation. The findings of the Tribunal are quoted herein below : The time limit for imposing the penalty under Section 271(1)(c) of the Act is prescribed in Section 275(1) of the Act. Section 271C is not a penalty, which is initiated in the course of any proceedings. There is no time limit for initiation of penalty under Section 271C of the Act. The lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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