Initiation of penalty proceedings u/s 271C and the limitation ...

Tax penalty initiated on reference date, not notice - assessee wins on limitation.

Case Laws Income Tax

November 12, 2024

Initiation of penalty proceedings u/s 271C and the limitation period for levying such penalty. The key points are: The penalty proceedings were initiated on the date of receipt of the reference for penalty proceedings (25.09.2014) and not on the date of issuance of the show cause notice (04.08.2014). The reference marked the first step for initiating penalty action, while the show cause notice provided an opportunity to the assessee to explain. The word 'initiated' means to begin, commence, or set in motion, as per dictionary meanings cited. The Supreme Court decision in Om Prakash Jaiswal v. D.K. Mittal was referred to for interpreting the expression 'initiate any proceedings'. Since the penalty order was passed beyond the limitation period from the date of initiation (25.09.2014), it was barred by limitation. The High Court upheld the Tribunal's decision in favor of the assessee.

View Source

← Previous Next →

Initiation of penalty proceedings u/s 271C and the limitation ...

Tax penalty initiated on reference date, not notice - assessee wins on limitation.

Case Laws Income Tax

November 12, 2024

You may also like:

The key points are regarding the penalty imposed u/s 271D read with Section 269SS, and the issue of whether the penalty orders were time-barred. The Assessing Officer...

Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax -...

Penalty u/s 272A(2)(g) was levied for not issuing TDS certificates in Form 16A to deductees on time. The issue pertained to the period of limitation for issuing the...

Penalty u/s 271(1)(c) - Disallowance u/s 40(a)(ia) - AO has not applied his mind before initiating the penalty proceedings rather borrowed his satisfaction from the “tax...

The Assessing Officer (AO) consciously deleted irrelevant portions from the show cause notice, mentioning only the charge of furnishing inaccurate particulars of income....

Income assessed in hands of Appellant as Representative Assessee. No credit for prepaid taxes availed by beneficiaries. JCIT(A) directed AO to verify claim of prepaid...

Penalty u/s 271(1)(c) - Validity of notice - It is a well settled proposition of law that penalty cannot be initiated for the limb, which is different from the limb for...

Recovery of service tax alongwith interest and penalty - Extended period of Limitation- The tribunal found that the appellant had disclosed their CENVAT credit in their...

Penalty u/s 271(1) (c) - period of limitation - treatment of lease rent income - in the revised return, assessee claimed the same as income from house property to claim...

Levy of penalty u/s 271C - Period of limitation - In the present case, since penalty u/s 271C has not been initiated during the course of any proceedings, first part of...

Jurisdiction - legality of parallel proceedings initiated by the Central Tax Officer and the State Tax Officer - The proceeding initiated by the petitioner is with...

Penalty u/s 271(1)(c) - accrual of income for assessee society - In assessee`s appeal assessing officer treated contribution towards welfare Fund and Hospital Fund as...

The Appellate Tribunal found that the penalty was initiated u/s. 271DA instead of u/s. 271D, which led to confusion and violated the assessee's right to a fair hearing....

Levy of penalties u/ss 122 and 129 of CGST/SGST Acts - expiry of e-way bill - mens rea in penalty imposition. Technically, violation of law by petitioner in transporting...

Penalty u/s. 271E - period of limitation - There is no dispute that the period of limitation is required to be examined as per Section 275(1)(c) - it is futile to...

Quick Updates: