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TMI Blog2023 (10) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO had taken prior approval of the ACIT, who is equal in rank to the JCIT, before triggering the penalty proceedings. Thus, although the decision to initiate penalty proceedings is found embedded in the assessment order dated 31.12.2010 and approval to frame the assessment order was given prior to the said date, the notice was issued only on 13.06.2011. Even though this may be an additional factor in this particular case, our reasons for holding the limitation period as prescribed u/s 275 (1)(c) had expired latest by 30.06.2011, is not confined only to this aspect of the matter. The appellant/revenue, as noticed above, cannot extend the period of limitation by deciding at its whim and fancy when the notice has to be issued. The noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this is a pure question of law, and the facts are not in dispute, with the consent of the counsels for the appellant/revenue, the appeal is taken up for hearing and disposal at this stage itself. 7. For the purpose of adjudicating the appeal, the following brief facts are required to be noticed: (i) The assessment order concerning the AY in issue, i.e., 2008-09, was passed on 31.12.2010; (ii) While passing the assessment order, the Assessing Officer (AO) issued notice for initiation of penalty proceedings under Section 271AAA, 271 D, and 271 E. (iii) A perusal of the assessment order shows that the AO made the following endorsement, insofar as the penalty proceedings were concerned: Assessed u/s 153A/143(3) as abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in, for the purpose of calculating the end date when the limitation expires, depending on whichever is the later date. 9.2 The first limb points in the direction that the end of the Financial Year in which the quantum proceedings are taken out, in the course of which action for imposition of penalty is initiated are completed. This would provide the end date when limitation would expire under the first limb. 9.3 According to the second limb, limitation is to be calculated having regard to the end of the month in which the action taken for imposition of penalty is initiated. Thus under this limb, limitation would commence from the end of the month in which the action for imposition of penalty is initiated (except where the two dates co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed by the concerned officer would be the sum equal to the amount of loan or deposit for the specified advance so repaid. This provision has been made in sub-section 1 of section 271E. Sub-Section 2 of section 271E provides that the penalty imposable under sub-section 1 of the said section shall be imposed by the Joint Commissioner. 16. It is based on the language of sub-section 2 of section 271E that Mr. Kumar argues that the AO could not have triggered the penalty proceedings and hence, the limitation would commence, as prescribed, only from the date when the JCIT issued the notice. 16.1 Therefore, based on this line of argument, Mr Kumar says that the limitation in this case expired only on 31.12.2011, and since the penalty order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 30.06.2011, is not confined only to this aspect of the matter. The appellant/revenue, as noticed above, cannot extend the period of limitation by deciding at its whim and fancy when the notice has to be issued. The notice under Section 274 should have been issued before the period of limitation, as discussed above. 21. Thus, for the foregoing reasons, the question of law which has been framed is answered against the appellant/ revenue and in favour of the respondent/assessee. 22. The appeal is disposed of, in the aforesaid terms. 23. Before we conclude, we place on record our gratitude to Mr Nischay Kantoor for assisting us in this matter. 24. The Registry will dispatch a copy of the order to the respondent/ assessee via all p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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