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TMI Blog2024 (11) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... said proceedings. He issued the show cause notice almost a year after receiving of the reference. The expression initiated is not defined under the Act and must be construed in its normal sense. The word initiated is a past tense of the word initiate . The Shorter Oxford English Dictionary defines the word initiate as under: to begin, commence, enter upon, to introduce, set going, originate. In Webster s Third New International Dictionary, the word initiate has, inter alia, been defined thus: to begin or set going: make a beginning of: perform or facilitate the first actions, steps, or stages of: The Words and Phrases (Permanent Edition) defines initiate to mean: an introductory step or action, a first move; beginning; start, and to initiate as meaning to commence. In Om Prakash Jaiswal v. D.K. Mittal Anr [ 2000 (2) TMI 831 - SUPREME COURT] the Supreme Court had considered the meaning of the expression initiate any proceedings for contempt by referring to the dictionary meaning of the said word. The expression action for imposition of penalty is initiated must, thus, clearly refers to the date on which the first introductory step for such action is taken, it must necessarily mean t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the default in deducting and depositing tax at source was admitted, as it was reflected in the tax audit report. Accordingly, the AO made a reference to the JCIT, Range 76, Delhi on 25.09.2014. 4. The concerned JCIT did not take any steps for issuance of show cause notice for a considerable period of time after receipt of the reference. He issued the show cause notice on 04.08.2015 after the lapse of almost one year of receipt of the reference from the AO. He, thereafter proceeded to pass order dated 25.02.2016, levying a penalty of Rs. 5,00,40,103/- under Section 271C of the Act. The assessee successfully appealed the said decision before the learned CIT (Appeals) [hereafter CIT(A)]. By an order dated 16.08.2017, the learned CIT(A) allowed the assessee s appeal (Appeal No. 289/16-17) and deleted the penalty on the ground that it was barred by limitation. 5. The learned CITA noted that in terms of Section 275 (1)(c) of the Act, no order imposing penalty could be passed after expiry of six months from the end of the month in which the action for imposition of penalties was initiated. 6. It is the assessee s case that the penalty proceedings were initiated on receipt of the ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision in CIT v. Worldwide Township Projects Limited (supra) in which the Court concurred with the view expressed in Commissioner of Income-Tax v. Hissaria Bros. (2007) 291 ITR 244 (Raj) in the following terms: The expression other relevant thing used in s. 275 (1) (a) and cl. (b) of Sub-s. (1) of S. 275 is significantly missing from cl. (c) of s. 275 (1) to make out this distinction very clear. We are, therefore, of the opinion that since penalty proceedings for default in not having transactions through 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and there was no explanation to the said delay, the said decision also rests on the principle that the initiation of penalty proceedings cannot be delayed in an arbitrary manner. And, the initiation of proceedings must be considered as on date on which a reference was made to the concerned officer if not earlier. 13. In the present case, the learned JCIT, after receipt of the reference for penalty proceedings, had not taken immediate steps for concluding the said proceedings. He issued the show cause notice almost a year after receiving of the reference. 14. The expression initiated is not defined under the Act and must be construed in its normal sense. 15. The word initiated is a past tense of the word initiate . The Shorter Oxford English Dictionary defines the word initiate as under: to begin, commence, enter upon, to introduce, set going, originate. 16. In Webster s Third New International Dictionary, the word initiate has, inter alia, been defined thus: to begin or set going: make a beginning of: perform or facilitate the first actions, steps, or stages of: 17. The Words and Phrases (Permanent Edition) defines initiate to mean: an introductory step or action, a first move; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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