2016 (10) TMI 979

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....ing the appeal framed following substantial questions of law:- "(i) Whether the ITAT has erred in law and on face by holding that the time limit prescribed for completion of penalty proceedings under Section 275(1)(a) is applicable and not 275(1) (c). (ii) Whether the ITAT has erred in law in holding that in quantum appeal, the CIT(A) as well as ITAT has not considered the nature of transaction and has given wrong findings." 3. The brief facts of the case are that a search under Section 132 of the Act was carried out at the assessee's business premises and residential premises of its members, during which stock-in- trade, valuables, cash, jewellery, documents, books of accounts and/or loose papers were found and sei....

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....R 156 (Raj.) and CIT Vs. Jitendra Singh Rathore reported in (2013) 83 DTR 0227 (Raj.) as well as Bombay Tribunal in Lodha Builders (P) Ltd. vs. Assistant Commissioner of Income Tax reported in (2014) 163 TTJ 778 (Mum Trib) and Supreme Court in CIT vs. Hissaria Bros. reported in (2016) 288 CTR 244 (SC) and circular of CBDT which reads as under:- "1. It has been brought to the notice of the Central Board of Direct Taxes (hereinafter referred to as the Board) that there are conflicting interpretations of various High Courts on the issue whether the limitation for imposition of penalty under sections 271D and 271E of the Income tax Act, 1961 (hereafter referred to as the Act) commences at the level of the Assessing Officer (below the r....

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....one by the Assessing Officer. The statement in the assessment order that the proceedings under Section 271D and E are initiated is inconsequential. On the other hand, if the assessment order is taken as the initiation of penalty proceedings, such initiation is by an authority who is incompetent and the proceedings thereafter would be proceedings without jurisdiction. If that be so, the initiation of the penalty proceedings is only with the issuance of the notice issued by the Joint Commissioner to the assessment to which he has filed his reply." 4. The above judgment reflects the "Departmental View". Accordingly, the Assessing Officers (below the rank of Joint Commissioner of Income Tax) may be advised to make a reference to the Ra....