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TMI Blog2024 (2) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... the expiry of financial year in which the proceedings, in the course of which action for imposition of penalty have been initiated, are completed, or six months from the end of the month in which the order of the Appellate Tribunal was received by the PCIT or Chief Commissioner or Principal Chief Commissioner or Commissioner, whichever period expires later. In this case, the Tribunal passed the orders on 24/03/2021 and by 31/03/2021, the financial year ends or by the end of September, 2022, six months expires from the end of the month in which the order by the Appellate Tribunal was passed. There is evidence to justify the action of the AO in passing the current impugned order dated 01/04/2022. On this score, Revenue has no case. Coming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted with the proceedings u/s 271(1)(c) unless and until the twin requirements u/s 271(1)(c) of the Act are satisfied . Viewing from any angle, we find that the impugned penalty order is unsustainable in law and while accepting the plea of the assessee, we hold that the penalty cannot be sustained. Accordingly, we direct the learned assessing officer to delete the same. Decided in favour of assessee. - Shri Rama Kanta Panda, Vice President And Shri K.Narasimha Chary, Judicial Member For the Assessee : Shri S. Rama Rao, AR (Through virtual mode) For the Revenue : Shri Shakeer Ahamed, DR ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 21/12/2023 passed by the learned Commissioner of Income Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 13/08/2021, levying a penalty of Rs. 98,280/-. Learned Assessing Officer, however, revisited the penalty proceedings and passed an order dated 01/04/2022, levying a penalty of Rs. 16,45,957/- and this order is the subject matter of this appeal. 4. Assessee preferred appeal before the learned CIT(A) and reiterated its stand that was taken during the assessment proceedings and according to the learned CIT(A), no fresh evidence was adduced. According to the learned CIT(A), it was by mistake, the learned Assessing Officer passed two penalty orders, but since the appeal was filed in respect of the penalty levied by order dated 01/04/2022 while cancelling the penalty that was levied by earlier order, learned CIT(A) confirmed the penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d still claimed by the assessee is clearly a form of tax evasion attempt and falls under the term furnishing of wrong particulars of income and, therefore, the authorities are justified in levying and sustaining the penalty. Reliance is placed on the decision of CIT vs. Zoom Communications Private Limited, 327 ITR 510. 7. We have gone through the record in the light of the submissions made on either side. Insofar as the first objection of the assessee based on law of limitation is concerned, section 275 of the Act is clear in its purport that no order imposing penalty under chapter XXI after the expiry of financial year in which the proceedings, in the course of which action for imposition of penalty have been initiated, are completed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural and normal; that threat of penalty cannot become a gag and/or haunt an assessee for making a claim which may be erroneous or wrong, when it is made during the course of the assessment proceedings; that normally, penalty proceedings in such cases should not be initiated unless there are valid or good grounds to show that factual concealment has been made or inaccurate particulars on facts were provided in the computation. Law does not bar or prohibit a person from making a claim, when he knows the matter is going to be examined by the Assessing Officer. 10. We can find an authority on this aspect in the case of CIT vs Reliance Petroproducts Pvt Ltd [2010] 322 ITR 158 (SC), wherein the Hon ble Apex Court held that when the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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