TaxTMI 
TaxTMI 
2014 (3) TMI 253
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....'the Act') confirming the penalty levied on the assessee. 2. The facts in brief are: The assessee is engaged in the business of buying and selling of audio, video equipments and related accessories. On 06-12-2000, a search was conducted u/s.132 of the Act in the case of Shri P.Ganesan, Proprietor M/s. Saravana Video Centre. Shri P. Ganesan is the father of the assessee. Consequent to search, assessment u/s.158BD r.w.s.158BC of the Act was completed on 29-10-2004 determining un-disclosed income of the assessee as Rs. 36,14,731/-. Penalty proceedings u/s.158BFA were also initiated against the assessee. Notice u/s.158BFA(2) was issued on 29-10-2004. However, after issuance of notice no action what so ever was taken in penalty proceedings. The....
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....ation. Moreover, no proceedings were pending before any authority when the second notice was issued. As far as first notice is concerned, it abated after the period of six months from the date of issue. Therefore, the action of the authorities below in levying penalty is barred by limitation. The ld.AR further submitted that a perusal of notice issued u/s. 158BFA(2) would show that it is a stereo typed notice and no reason was recorded by the Assessing Officer for initiating penalty proceedings. The ld.AR further contended that the assessee had paid the entire tax amount and no amounts what-soever is due. In order to strengthen his contentions, the ld.AR placed reliance on the order of the Bangalore Bench of the Tribunal in the case of Nemi....
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....t exceed three times the amount of tax so leviable in respect of the undisclosed income determined by the Assessing Officer under clause (c) of section 158BC. Provided that no order imposing penalty shall be made in respect of a person if - (i) Such person has furnished a return under clause (a) of Section 158 BC; (ii) The tax payable on the basis of such return has been paid or, if the assets seized consist of money, the assessee offers the money so seized to be adjusted against the tax payable; (iii) Evidence of tax paid is furnished along with the return; and &nbs....
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....n which the order of the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or the Commissioner, whichever period expires later; (d) in a case where the assessment is the subject-matter of revision under section 263, after the expiry of six months from the end of the month in which such order of revision is passed; (e) in any case other than those mentioned in clauses (c) and (d), after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for i....
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.... of the assessee in penalty order. 7. A perusal of sub-section 3 of section 158BFA would show that penalty proceedings should be completed within the financial year or within six months from the end of the month in which the proceedings are initiated, whichever is later. In case of pending appeal before first appellate authority (CIT(A) or Tribunal, time limit for completion of assessment is extended till expiry of six months from the end of the month in which the assessee receives the order of the CIT(A) or the Tribunal or the revisional order of the assessee is passed. In the case of first appeal or appeal before the Tribunal, penalty proceedings can be completed, if it is in the same financial year of such recomputation ....