Time Limit - initiation of penalty proceedings u/s 221

[CAGOPALJI AGRAWAL]

Dear All Is there any time limit for initiation of penalty proceedings u/s 221 of the IT Act? There is limitation for concluding the same u/s 275 once initiated. Please help me out.

Gopal

[Rama Krishana]

Yes, you are correct, section 221 read with section 275, there is no time limit for initiation of penalty proceedings. There is time limit for completion of penalty proceedings.

AI Summary

Time limit for initiation of penalty proceedings: initiation is not time-barred, but completion faces statutory limitation. There is no prescribed time limit for initiation of penalty proceedings under the Income Tax regime; however, a distinct statutory limitation governs the completion of such penalty proceedings, imposing a time-bound requirement for concluding them once initiated.